Credit Card Processing Services Setup for Collection Agencies

Debt collection agencies are vital players in many financial sectors, with the debt collections market reaching a value of $20.4 billion in 2023. However, these agencies are still considered “high-risk” by many banking institutions, making it difficult to secure merchant accounts. MBankcard makes it easy to secure merchant accounts regardless of being high-risk.  We work to find the right processing plan that works best for your business when signing up for a merchant account so that your business can accept payments and process transactions efficiently.  MBankcard has an easy online application process and rapid approvals by the bank. 

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Having the option for credit card processing allows debt collection agencies to expand their client base and allows them to offer more flexible payment options.  The first step for a debt collection business is to secure a merchant account tailored to their industry’s specific needs

There are several different business types in the collections industry including:

• Debt Collection Services
• Accounts Receivable Collection
• Debt Recovery Agencies
• Collection Agency Solutions
• Commercial Debt Collections
• Consumer Debt Collection
• Healthcare Debt Recovery
• Debt Settlement Agency
• Medical Debt Collection Services
• Corporate Debt Collection Solutions
• Collection Agencies
• Debt Buyers
• Healthcare Debt Purchases
• Corporate Collections
• Retail Merchant Collections
• Accounts Receivable Outsourcing
• Debt Purchase Agencies
• Third-Party Debt Collection Solutions

Depending on the type of debt collection business you operate can impact the payment methods you accept along with your associated fees.

Ever wonder how credit card companies decide which businesses fall into certain categories—and why it matters to your bottom line? That’s where Merchant Category Codes (MCCs) come into play.

An MCC is a four-digit code that identifies the type of goods or services a business provides. These codes influence everything from processing fees and interchange rates to taxes and payment processing options.

For debt collection agencies, the picture can get tricky. Typically, they’re classified under high-risk MCCs, which can lead to:

• Higher fees on credit card transactions
• Challenges in securing accounts with certain payment processors
• Restricted access to affordable payment solutions

Understanding your MCC and its impact can empower your agency to make smarter financial decisions and choose the right payment solutions.

How a Collection Agency Merchant Account Will Help Your Business Forward

Accepting credit card payments isn’t just convenient—it’s a game-changer for your bottom line. With a merchant account specifically designed for the high-risk debt collection industry, you can:

• Streamline Payment Processing: Say goodbye to the headaches of high-risk payment hurdles.
• Simplify Credit Card Acceptance: Make it easier for clients to pay without added obstacles.
• Avoid Unnecessary Complications: Partner with a provider that knows the challenges you face.

A specialized high-risk merchant account sets your agency up for smoother transactions, fewer disruptions, and more confidence when accepting payments.

Why Are Collection Agencies Labeled as High-Risk?

It’s not just a label—it’s reality. Collection agencies are considered high-risk for several reasons:

• They operate in an industry focused on recovering unpaid debts.
• Cardholders may dispute charges out of frustration, driving up chargeback rates.
• High transaction volume and fulfillment delays can lead to further scrutiny.

Banks typically require debt collection agencies to maintain chargeback rates below 1% to keep accounts active. When accounts shut down, securing a new one can be a complicated uphill battle—this is why high-risk merchant accounts are essential.

Why Partner with MBankcard?

At MBankcard, we simplify the process of securing a reliable, high-risk merchant account. We offer specialized solutions that fit the unique needs of debt collection agencies, including:

• Fast Approvals
• State-of-the-Art Security Features
• Mobile & Retail Payment Options
• Customizable Payment Solutions
• Reliable & Timely Processing
• Responsive Customer Support

Our cutting-edge chargeback management tools and competitive payment solutions are designed to keep your operations efficient, secure, and stress-free.

Top Payment Tools for Your Collection Agency

With MBankcard, you gain access to a variety of innovative payment solutions:

• Multiple eCommerce Gateways
• ACH Payments & eChecks
• Mobile Payments & Text-to-Pay Options
• QR Code Payments
• Online Invoicing & Virtual Terminals
• 3D Secure Frictionless Checkout
• B2B-Level II/III Data Discounts

These tools are designed to make payment acceptance seamless, secure, and consumer-friendly—so you can focus on what you do best: collecting debts.

Stay Compliant & Build Trust with Industry Regulations

Navigating regulations can feel challenging, but they can also strengthen your credibility. Compliance with the Fair Debt Collection Practices Act (FDCPA)—enacted in 1978—ensures fair treatment for consumers and demonstrates your agency’s commitment to ethical practices.

Following industry standards doesn’t just protect you from disputes; it can also make it easier to secure credit card processing and foster better client relationships.

Ready to Elevate Your Payment Processing with MBankcard?

Whether you’re launching a new collection agency or seeking better rates, state-of-the-art equipment, and added security, MBankcard is here to simplify your high-risk payment processing journey.

We’ll handle the complexities of credit card processing so you can focus on growing your business. And to make things even easier, we offer free rate reviews to ensure you’re getting the best deal available.

Contact MBankcard today or fill out the form below—let’s streamline your credit card processing and help your business thrive.

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