Bail Bonds Merchant Account
The bail bondsman business is massive and valued at more than $2 billion, but starting out in this industry is tough. There is no massive competition that a new business will be going up against, it will all be small, local companies that you need to compete with a majority of the time. If you are looking to join the industry, you will find that you need a bail bonds merchant account in order to process online transactions.
In the bail bond industry, businesses encounter issues with securing a bail bondsman credit card processor. Maintaining a stable e-commerce checkout process on your site will allow you to process more bail bond payments quickly and securely. In the bail bondsman business, obtaining a bail bond merchant account is one way to ensure your business is not interrupted while collecting payments and expanding your clientele.
Bail Bond Payment Processing is High-Risk
When a bail amount is set by a judge, the defendant in court is required to pay the bail amount in order to remain free until their official court date. But, if the defendant is incapable of paying the bail amount in full, they may feel out of luck. A bail bond company is an entity that pays the bail amount, but takes partial payment and collateral from the defendant so that they can get paid back. In order to begin a bail bondsman business, a bank must approve your bail bond payment gateway account before you begin accepting payments.
The bail bond industry is considered hard to place because of the risk of missed repayments leaving you in debt. If an individual chooses to flee prior to their trial hearing or court date, the bail bond company becomes liable for the bail that was offered up to the court. In addition to being liable for the bail bond payment, bail bond companies may also encounter:
- Fraud: Bail bond companies have a much greater risk of experiencing fraud or working with individuals who have no intentions of paying for services rendered.
- Chargebacks: Bail bond companies and services are also at risk for a greater chargeback rate. Traditional banking institutions and merchant account providers are more likely to turn companies with higher chargebacks away due to their high-risk nature.
- Reputational Risk: Some banks don’t like to support less-than-perfect industry types. And this is one of those less-than-perfect industries. Unfortunately, the brunt of this risk is felt on behalf of the bail bondsman payment processing account.
Risks of Standard Payment Processors
If you get a merchant account with a traditional bank, you put your business at risk of closure. Many of our bail bondsman merchants come to us because they have had their accounts shut down due to their industry type. Tier one banks use auto-approval techniques to board their merchants and don’t underwrite them according to their risk. This leaves high-risk merchants at risk of being found and shut down, sometimes days or weeks later.
Some of the most popular payment processors used include Stripe, Square, and Braintree. While these payment processors are well-known, they do not typically work with high-risk industry companies. Even if you currently have an account with a standard payment processor, you run the risk of encountering the following issues at any time and often without warning:
- Processing Payments: If your account is determined to be high-risk, you may no longer have the ability to process payments or collect money that is owed to you. Your account may be shut down for violating the processor’s terms of service as well.
- Payment Holds: If your business is shut down because of its high-risk status, your revenue will immediately stop and your funds can be held for up to 6 months. This may happen without warning and can throw a big wrench in your business moving forward.
- TMF List: In addition to everything above, if you have been found to be in fault of terms of service, your business can be added to the Terminated Merchant File. Being on this list prevents you from being able to accept payments for this business for up to 5 years.
Why to Apply for a Bail Bond Merchant Account
Before you collect any bail bond payments online from clients, you need to apply with a high risk bail bondsman credit card processor. This way, you have a secure bail bond payment gateway that can accept all types of online card payments.
A merchant account designed for bail bonds is extremely useful because of the payment processor’s underwriting and risk mitigation procedures. Avoid the risks of using a standard payment processor by applying for a high risk bail bond merchant account that is right for your business.
Steps To Approving Your Bail Bondsman Business
Applying for an online bail bond merchant account is possible once you have researched and compared your payment processing options. Along with standard banking information, credit score history, and your personal information (SSN or EIN), you will be requested to share the following:
- History of Sales/Chargebacks: Proof of sales and your current chargeback rate may be requested (if available).
- Website: Your current eCommerce store or setup will be required to ensure that you are compliant and fully operational.
Working in the bail bondsman business is not always easy, especially as the industry is rife with risk. Whether you provide consultation services for individuals in need of a bail bond or if your company provides the bonds themselves, working with a bail bondsman credit card processor is a must. With the right bail bond payment gateway, you can streamline the transaction process, collect continuity payments, and scale your business efficiently.
Partnering with a Credit Card Processor you can Trust
Here at PaymentCloud, we are able to support the bail bondsman business and support their industry type. With hundreds of integration possibilities and individualized help, we make the onboarding process as easily as possible for our merchants. If there are any questions about the application, onboarding, or after integration, your dedicated representative will be available directly. Allow us to walk you through the process and begin accepting credit cards for your business.