Debt Collection Merchant Account Solutions

Accepted Business Types

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 merchantA business that accepts credit cards for goods or services. accounts for collection agencies. Debt collection businesses should partner with a merchantA business that accepts credit cards for goods or services. service provider that has expertise in high-risk merchantA business that accepts credit cards for goods or services. 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
» MOTOA type of payment card transaction where the order and payment information is transmitted to the merchant either by mail or by telephone. This a card not-present transaction. businesses
» Debt collection agencies
» Debt portfolio collection services
» Collateral recovery and repossession services

NMA cannot provide merchantA business that accepts credit cards for goods or services. accounts to agencies that purchase bad debt or want to accept credit cards.

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What to Expect

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

» Signed and completed merchantA business that accepts credit cards for goods or services. processing application (MPA)
» Validation of settlementThe process of transferring funds for sales and credits between Acquirers and Issuers, including the final debiting of a cardholder’s account and crediting a seller’s account. 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 merchantA business that accepts credit cards for goods or services. application package. NMA’s in-house underwriting team ensures streamlined communication throughout the application and setup process.

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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 merchantA business that accepts credit cards for goods or services. processors invested in limiting liability exposure.

Navigating the regulatory environment is complicated enough. Payment processing should be simple. Partnering with a merchantA business that accepts credit cards for goods or services. 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 riskA merchant that is considered a high risk based upon the credit, product, method, ticket size or volume. Examples of high risk merchants are telemarketing, adult and travel related industries.” doesn’t mean corrupt. High riskA merchant that is considered a high risk based upon the credit, product, method, ticket size or volume. Examples of high risk merchants are telemarketing, adult and travel related industries. means that your merchantA business that accepts credit cards for goods or services. 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 MIDA number that numerically identifies each merchant to the merchant processor for accounting and billing purposes..

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