High Risk Done Right

Debt Collection Merchant Account Solutions

High Risk Done Right®

Trouble finding long-term merchant processing?

Problem solved.

High Risk Experts
National Merchants Association (NMA) is the expert in hard-to-place merchant accounts. If you operate a debt collection business, you’ve likely experienced difficulty acquiring and maintaining a merchant account.

Merchants operating in the debt collection industry are in the business of moving money, acting as an intermediary to help businesses collect on unpaid debts. The majority of payments made to collections agencies are made by mail or over the telephone, constituting a Mail Order Telephone Order (MOTO) transaction. Cash payments aren’t an option for debt collection companies, so the ability to accept debit card payments is crucial to business success.

NMA understands the need for a working, healthy merchant account, especially for debt collectors in the card-not-present space. If you’ve had trouble getting your debt collection business approved for electronic processing, we have good news! NMA has you covered.

Get my approved merchant account!

Chip to cash iconDebt Collections Expertise
Payment solution iconCustom Merchant Account Solutions
Increasing arrow on chart - iconLongevity and Processing Stability

Accepted Business Types

NMA has expertise in high-risk merchant processing as well as the collections industry

The current regulatory climate places restrictions on businesses operating in the debt collection ecosystem. The Fair Debt Collection Practices Act, for instance, prevents collection agencies from abusive practices and limits communication, legal action and disclosures.

Regulatory requirements and compliance concerns often prevent acquiring banks from approving merchant accounts for collection agencies. Debt collection businesses should partner with a merchant service provider that has expertise in high-risk merchant processing as well as the collections industry, in order to support compliance and best practices adherence. NMA has your high-risk business’ best interest in mind; offering customized processing solutions to position you for growth and success. NMA provides processing for:

» Domestic, U.S.-based accounts
» Brick-and-mortar businesses
» E-commerce businesses
» MOTO businesses
» Debt collection agencies
» Debt portfolio collection services
» Collateral recovery and repossession services

NMA cannot provide merchant accounts to agencies that purchase bad debt or want to accept credit cards.

top ∧

What to Expect

For any NMA merchant account, a basic package is required to get started:

» Signed and completed merchant processing application (MPA)
» Validation of settlement bank account (voided check or bank letter)
» Validation of business entity (articles of incorporation, fictitious name filings etc)
» Validation of ownership (driver’s license/passport, beneficial ownership information, etc)
» Supporting financial documentation (personal and/or corporate tax returns, bank statements, processing statements)
» Thorough review of the merchant’s website; including vetting of the service and compliance requirements

Depending on business history and financials, additional documents may be requested in order to round out the merchant application package. NMA’s in-house underwriting team ensures streamlined communication throughout the application and setup process.

top ∧

Debt Collections Agencies: Why They’re Considered High Risk

Debt collectors are highly monitored by the Federal Trade Commission (FTC) and other regulators, as the industry as a whole has an unscrupulous history of deceptive and unethical practices. According to the FTC, debt collection accounted for 23 percent of all consumer complaints in 2017 – a major concern for card brands and merchant processors invested in limiting liability exposure.

debt collection agencies
According to the FTC, debt collection accounted for 23 percent of all consumer complaints in 2017

Navigating the regulatory environment is complicated enough. Payment processing should be simple. Partnering with a merchant services provider who understands the collections industry and high-risk payment processing is crucial to your success.

Although debt collection is a restricted industry for payment processing, the label “high risk” doesn’t mean corrupt. High risk means that your merchant account needs additional maintenance and consideration to ensure longevity and prosperity.

Collection merchants can count on NMA to provide custom merchant accounts, in-house underwriting, and risk management to maintain MIDs and keep them healthy. With NMA’s expertise and deep commitment to collaboration, debt collectors can thrive with a long-term MID.

top ∧

Debt Collection Industry Faces Evolving Compliance Regulations

The debt collection industry has undergone major transformations over the past decade and evolved to keep pace with changing compliance requirements.

Read More

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) (15 USC 1692 et seq.), which became effective in March 1978, was designed to eliminate abusive, deceptive and unfair debt collection practices.

Read More

Credit Counseling and Debt Services

Proactive counseling, advocacy and vigorous defense – Venable LLP.

Read More