Collection agencies have become more difficult for our banks to accept as many times, it is difficult to collect debt with debt. However, given this statement, we can and do help collection firms get new merchant accounts and/or help them reduce their current fee structure for payment processing. Our merchants include collection agencies that have processing history and collection agencies that will be first time acceptors of credit cards.
personal loan on low income
Reserve accounts are based on the financial strength and history of our collection merchant, processing history, credit, financial and other information reviewed by our credit officers. Of course, AMP will try to set up merchant with no reserve to increase the bottom line cash flow availability of our merchants but we cannot make a firm decision until due diligence completed by our internal staff.
We can set up collection agency for Visa Debit and MasterCard Debit and Credit. Both Discover and American Express are prohibited. Some of our collection merchants will request that their fees come out of their Operating Bank Account and their deposits go into their Trust Bank Account which is common with many lawyers who specialize in this field. AMP is able to handle this request but it is important that we understand your needs before application is submitting to our underwriting department.
In the majority of cases, AMP should be able to reduce an existing merchant’s credit card fees which will increase the bottom-line profitability of your business. Should a merchant be a first time acceptor and does not have any processing history, we charge a minimum rate of 3.95% + $0.25 per transaction fee. Once our merchant has a clean processing history for a minimum of 6 month with minimal chargeback history, AMP will re-evaluate merchant with the expectation of reducing current fee structure to a more competitive rate.
AMP is asked continuously about the opportunity for our collection agencies to accept a Convenience Fee for credit card rate acceptance. Although some processors will allow this payment method, the Federal Trade Commission in March 2013 settled a large case and required the collection agency based in Mississippi violated the FTS Act and the Fair Debt Collection Practices Act by deceptively charging consumers a fee for payments authorized by telephone by telling consumers that this fee was unavoidable when, in fact, those who paid by mail or online do not incur the fee. Under the terms of the proposed settlement, the defendants will pay $799,958 in restitution for consumers. AMP will work within the guidelines of the law (both federal and state) and the Credit Card Associations (Visa, MasterCard) to set up your merchant account. Finally, acquiring banks consider collection agencies high risk for a variety of reasons. Many countries, including the United States, require debt collection companies to obtain an appropriate business license, bond, or both.
As of Summer 2014, AMP is in discussions with many collection associations including The Association of Credit and Collection Professionals (ACA International), National Association of Retail Collection Attorneys (NARCA), North American Collection Agency Regulatory Association (NACARA), Commercial Collection Agency Association (CCAA) and International Association of Commercial Collectors (IACC) to set up a preferred and discounted credit card program should your collection agency belong to one of the numerous national collection agencies or state-based in local geographic area.
Collection agencies in the U.S. are also subject to both federal and state regulations. However, Alternative Merchant Processing specializes in working with your industry sector; once we confirm your collection agency is operating within state and federal laws, we will match you with one of our banking partners that offer collection agency merchant accounts.