Debt Collection Agency Merchant Account Services

PaymentCloud offers debt collection agency merchant account services with the best service, solutions, and security in the industry.
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Credit Card Processing for Collection Agencies

Debt collection agencies play an important role across many finance sectors. In fact, the debt collections market was worth $18.6 billion in 2021. Yet, the industry is considered “high-risk” by banking institutions, which often makes obtaining a merchant account for a debt collection agency a frustrating process. That’s where PaymentCloud comes in.

Setting up credit card processing allows debt collection agencies to reach more clients by way of offering more payment options. To set up credit card processing, businesses first need merchant accounts.

Because the debt collection industry is considered high-risk, finding the right merchant account is especially important. First, let’s look at how your debt collection agency fits into the business types in the industry.

Business Types in the Collections Industry

Many different businesses fall under the umbrella of debt collections.These include collection agencies, debt buyers, healthcare debt purchases, corporate collections, and retail merchant collections. The kind of collections business you operate shapes the payment options you may accept.

Merchant category codes for the debt collection industry

A merchant category code (MCC) is a four-digit number that credit card companies use to identify the type of goods or services a business provides. These codes can have a significant impact on a business. MCCs determine interchange rates , taxes, credit card processing fees, and more.

How do merchant codes affect a business in the debt collection industry? Credit card companies assign some merchants, like debt collection agencies, high-risk codes. This means they can be subject to higher fees and even denied by payment service providers.

How a Collection Agency Merchant Account Will Help You

Accepting card payments will help your company’s bottom line. To do so, you need a merchant account that best serves you. With a merchant account specializing in high-risk collection agencies, you can rid yourself of the uncertainty of high-risk payment processing and reap the rewards of receiving credit card payments.

Why Collection Agencies Are Classified as High-Risk

There’s a wide variety of reasons a business may be classified as high-risk. A merchant can be high-risk due to its number of transactions, products, industry, chargeback rate, fulfillment timeframes, or fraudulent transaction counts. Collection agencies are considered high risk because they are trying to collect on a debt that wasn’t paid on in the first place. Furthermore, when collecting on this debt with a credit card the cardholder might still try and dispute the charge out of anger.

How chargebacks play a role in the collections industry

Chargeback rates (the rates at which payments are returned due to disputes or refunds) play a major role in the debt collections industry. Banks will often deny debt collections agencies a merchant account due to their chargeback ratio. Collections merchants are often subject to a large number of chargebacks.

  • Note: A bank does not consider why a chargeback happens, but requires that the chargeback ratio remains under one percent.

If your merchant account is shut down, it can be very difficult to apply for another. That’s why merchant accounts specializing in high-risk services are the best option.

PaymentCloud Offers the Best Merchant Services

At PaymentCloud, establishing high-risk merchant accounts is our specialty. We offer cutting-edge merchant services catering to all your needs. This includes:

  • Fast approval
  • State-of-the-art security features
  • Mobile and retail payment options
  • Customizable solutions
  • Reliable processing times
  • Responsive customer support

Multiple payment solutions

PaymentCloud offers a variety of payment solutions and chargeback management tools to help your business be competitive in today’s market. Below are some of our most popular payment solutions:

Debt Collection Industry Regulations

Many banks deny merchant accounts to debt collection agencies despite industry regulations that were put in place to address the industry’s negative reputation and consumer complaints. Currently, the Federal Trade Commission (FTC) monitors and regulates the industry.

What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is one such industry regulation. The FDCPA is a consumer protection amendment that went into effect in 1978. It deters collection agencies from abusive practices. It does so by ensuring that those avoiding abusive practices are not disadvantaged.

Get a Merchant Account for Your Collection Agency

PaymentCloud is here to help you secure a merchant account for your debt collection agency today. For new businesses, allow us to simplify the process of high-risk payment processing . We’ll get you processing credit cards simply and quickly.

For existing businesses seeking better rates, new equipment, or state-of-the-art security, we can help you. We offer free rate reviews, and PCI compliant online credit card processing.

Whatever your payment processing needs, PaymentCloud has the solution.


  • IBIS World: Debt Collection Agencies in the US - Market Size 2005–2027
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Contact us for a custom package and start accepting payments instantly.

To begin your application, we’ll need:

  • Collection Policy Acknowledgement
  • Statement signed by Officer of Merchant that Merchant is FDCPA Compliant where applicable or if it doesn’t apply (this is in addition to the V/MC Signoff)
  • Copy of collection scripts used for collection calls
  • Copy of Client List
  • Copy of collection agreement signed by Collection Agency and customer
  • Most recent two years CPA prepared tax returns for the business (for merchants processing over $75k/month)

Easy Debt Collection Integrations

By integrating solutions and software you already use, PaymentCloud makes it easy to add merchant solutions to your business model. Connect your accounting software, CRM's, and 3rd party platforms with the click of a button. For more on the full list of integrations, talk to your senior account representative, or give us a call!


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