Did you know that debt collection is expected to grow by 23 percent by 2016, according to the U.S. Bureau of Labor Statistics? The main reason: An increasing number of consumers and merchants are falling back on their bills.
Enter the collections business. When you’re in an industry that’s working hard to recover debt from people and businesses that are often struggling to make ends meet, having a secure, affordable payment processor can make (or break) your business.
Many say that debt collection is a financial industry considered high risk by acquiring banks. This is mostly a result of the industry being highly regulated by both federal and state laws, which can make collection efforts a lot more difficult to accomplish in a legally compliant manner.
For this reason – and many others – obtaining card processing can be a headache for new and existing collection agencies and debt collection businesses.
Today, organizations need to offer as many options as possible for the collections process to be taken care of in a streamlined, efficient, flexible manner. The problem, in many cases, is that some companies do not actually understand the advantages associated with them.
Here are a few things to consider when it comes to card processing for collections:
- The most important advantage associated with the use of card processing is the fact these services make it easy and convenient for a debt to be collected. In these situations, payments can be set up via an automatic payment directly through the card processing service.
- When using card processing services that are specifically designed for collection agencies, the system that is implemented often offers numerous payment options, including cards and ACH processing.
- The services you implement are typically offered by a company that is specialized in dealing with high-risk industries. In laymen’s terms this means that there will likely be a better understanding in the event that something negative occurs.
In today’s increasingly cash-less world, collection agencies are turning to the business of processing outstanding debt via ACH and cards. There is always some risk involved in pursuing this approach, so be sure you have a solution that can ultimately grow with your organization. Additionally, be sure your solution is compliant with current card processing regulations and services so you don’t put your business in jeopardy.
Whether you need help to solve your card processing issues, or have questions concerning your customer transactions, BillingTree’s team of experts are here to offer the best solutions to your card processing for collections needs. Contact us today for more information.