The Best Collection Agency Merchant Services Providers In 2024

Get Started With PaymentCloud

Total Rating	4.1
Fees & Rates4.3 Pricing 4.0 Affordability 4.6
Products & Services5.0
Contract2.8 Commitment 2.1 ETF & Other Fees 3.4
Sales & Advertising Transparency3.9 Sales Practices 4.0 Web Presence 3.4
Customer Service4.2
User Reviews4.0

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Pros

Card-not-present & card-present options
Chargeback & fraud prevention
PCI compliance assistance

Cons

Non-transparent pricing
Poor website navigability
48-hour deposit processing time

Why PaymentCloud Is The Best Choice For Collection Agencies With A Strong eCommerce Presence

PaymentCloud's repertoire of POS solutions, card-present and card-not-present processing options, and focus on eCommerce makes it a great choice for both new and slightly more established debt collectors.

PaymentCloud Pricing

PaymentCloud doesn’t publically disclose its pricing on its website, which can make it more difficult for new collection agencies to accurately project their startup costs.

PaymentCloud Features

PaymentCloud provides users with advice on choosing a chargeback management service and fraud mitigation service. They even familiarize you with techniques and systems that keep customers satisfied and less likely to initiate chargebacks.

The company’s chargeback and fraud prevention assistance is a huge help to high-risk collection agencies and can go a long way toward making your customers more satisfied with your customer support systems and less likely to initiate chargebacks.

Help with PCI compliance is a godsend for businesses that operate in the highly regulated collections industry. PaymentCloud helps merchants navigate the necessary steps to become PCI-compliant within 90 days and without charging a PCI compliance fee.

What To Watch Out For

Many may find PaymentCloud’s organization of products on its website to be less than navigable.

Although their website’s navigability can be clunky, PaymentCloud’s history of few public complaints and excellent track record for customer support suggest that overall, it is a helpful and easy-to-work-with payment processor.

Choose PaymentCloud If You Want...

Dedicated onboarding support
Free assistance with becoming PCI-compliant
Chargeback and fraud prevention services

Host Merchant Services: Best For New Agencies

Host Merchant Services

Get Started With Host Merchant Services

Total Rating	4.9
Fees & Rates5.0 Pricing 5.0 Affordability 5.0
Products & Services5.0
Contract5.0 Commitment 5.0 ETF & Other Fees 5.0
Sales & Advertising Transparency4.7 Sales Practices 4.6 Web Presence 4.9
Customer Service4.6
User Reviews4.8

Pros

Transparent pricing plans & flexible fees/rates
Strong brick-and-mortar & eCommerce support
No monthly minimums

Cons

Expensive for low-volume merchants
Only available for businesses in the US
Some complaints of unexplained fee increases

Why We Chose Host Merchant Services As The Best Provider For New Agencies

Host Merchant Services is an ideal payment processor for new agencies operating in the debt collection industry. Its range of POS systems and card readers provide solutions for both card-present and card-not-present payment processing, which creates flexibility for various collection agency types.

Host Merchant Services Pricing

There are zero termination penalties or contract fees for agencies using Host Merchant Services, and disclosures of processing rates and account fees online provide a welcome amount of pricing transparency.

Host Merchant Services Features

Host Merchant Services caters well to collection agencies with various business models due to its specialized accounts with customized pricing for large- and small-ticket agencies as well as nonprofits.

Host Merchant Services’ POS systems and card readers as well as its excellent integration capabilities are thankfully easy to navigate with a strong reputation for standout customer service.

What To Watch Out For

Host Merchant Services’ exclusively interchange-plus pricing plans may be cost-prohibitive for low-ticket and very new agencies.

That being said, payment plans are transparent and predictable enough for even very small debt collection businesses to quickly parse through and understand.

Choose Host Merchant Services If You Want...

Well-rounded payment processing options
Transparent pricing
Brick-and-mortar and eCommerce support

Durango Merchant Services: Best For Agencies With Excessive Chargebacks

Durango Merchant Services

Get Started With Durango Merchant Services

Total Rating	4.8
Fees & Rates4.5 Pricing 4.4 Affordability 4.6
Products & Services5.0
Contract5.0 Commitment 5.0 ETF & Other Fees 5.0
Sales & Advertising Transparency4.9 Sales Practices 5.0 Web Presence 4.0
Customer Service4.4
User Reviews5.0

Pros

Fast onboarding
Dedicated account manager support
Strong fraud protection

Cons

No online disclosures of pricing
Requires a monthly minimum
Undisclosed contract terms

Why Durango Merchant Services Is The Best Choice For Agencies With Excessive Chargebacks

High-risk specialist Durango Merchant Services' ability to place accounts for merchants with histories of excessive chargebacks is invaluable to new collection agencies.

Durango Merchant Services Pricing

Durango doesn’t disclose its pricing plans to the public on its website, which can be frustrating. This lack of transparency in pricing is typical of the industry in general.

Durango Merchant Services Features

In addition to its support for merchants who may be on the TMF or MATCH List, Durango also works to prevent chargebacks in the future with multiple reputable anti-fraud services.

Fraud protection should be high on the list of priorities for a debt collector of any size and type, and Durango is well-placed to handle instances of fraud that are common to the collections industry. Durango combats consumer-related fraud with anti-fraud protections such as Verified by Visa, Mastercard SecureCode, Fraud Scrubbing, and EMV 3d Secure 2.0.

What To Watch Out For

Rather than try to sign you up for an overpriced equipment lease, Durango offers terminals, PIN pads, and mobile card swipers for direct sale on its website, and its payments gateway is a proprietary product.

Many other high-risk merchants are notorious for offering card readers and monthly gateway fees, but Durango helps new collection agencies set themselves up for affordable success by making its hardware directly for sale online.

Choose Durango Merchant Services If You Want...

Robust fraud protection
Affordable payment processing hardware
Support for merchants on the TMF or MATCH List

Soar Payments: Best For Agencies That Want Quick Underwriting

Soar Payments

Get Started With Soar Payments

Total Rating	3.9
Fees & Rates3.8 Pricing 3.6 Affordability 4.0
Products & Services3.9
Contract3.3 Commitment 2.8 ETF & Other Fees 3.8
Sales & Advertising Transparency4.7 Sales Practices 5.0 Web Presence 3.2
Customer Service4.4
User Reviews4.0

Pros

Quick & automated account application process
Wide range of hardware options
Fast underwriting

Cons

Unavailable to international merchants
No public disclosure of pricing
Sizable early termination fee

Why Soar Payments Is The Best Choice For Agencies That Need A Quick Underwriting Process

Soar Payments is a great choice for high-risk debt collectors that are looking for a quick-yet-thorough underwriting process as well as customized quotes after their application phase.

As is the case with our other top choices for debt collection merchant account providers, Soar supports systems for chargeback management and fraud prevention that can make or break the long-term success of any type of collection agency.

Soar Payments Pricing

Soar Payments works exclusively with U.S.-based agencies and therefore doesn’t support payment processing to offshore accounts that international merchants may need to handle. And, like several other merchants we’ve covered in this article, Soar doesn’t publicly disclose its pricing plans on its website.

Soar Payments Features

Soar offers an automated application process online that takes minutes to complete and provides merchants with a quote after the fact.

Soar partners with Chargeback.com to offer anti-chargeback features such as chargeback alert emails, services for fighting illegitimate chargebacks, and the iSpyFraud filter to detect fraud and suspicious transactions.

What To Watch Out For

Although Soar’s $495 early termination fee (for some accounts) may be steep, the termination fee is voided after the initial contract period. All in all, the payment processor’s high-risk contract terms are reasonable even for lower-volume debt collectors.

Choose Soar Payments If You Want...

An automated application process
A variety of hardware options
A custom quote for monthly fees/rates

Payment Processing Rating Methodology

Merchant Maverick has been researching the payment processing industry since 2009. Our writers have reviewed hundreds of credit card processors, merchant account services, and mobile payment apps, evaluating each provider carefully on several different metrics.

When comparing different payment processing companies and applications to one another, we consider numerous data points. Our experts start by comparing credit card processing rates, the presence of additional fees, contract length, sales practices, and the presence or absence of additional features and services, like point of sale software. Each provider is judged on its own merits and how well it stacks up to industry standards; then it is weighed against the other providers on the list.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Any list of recommended payment processors on our site might contain a mix of standard merchant accounts, third-party payment processors, mobile payment devices, and high-risk payment processors, depending on what our expert feels is the best fit for certain scenarios or business types.

For additional details about Merchant Maverick’s review and rating processes, please refer to any or all of the following methodology pages:

Years reviewing payment processors

100+

Providers evaluated

Attributes and features assessed per vendor

40+

Years combined experience

What You Need To Know About Credit Card Processing For Collection Agencies

Ready to integrate payment processing solutions into your new business? You’ll first need to navigate the logistics of processing different customer payment types with different pieces of hardware.

Collection agencies that process mostly credit card payments should keep an eye out for merchant account providers that support virtual terminals. Virtual terminals let business owners access a secure web page to process their customer payments with a built-in dashboard that’s similar to a physical card reader. Although most of these terminals can only process card payments, they also typically include smart features like recurring billing and options to automatically collect funds.

Debt collectors that typically process credit card payments rather than alternative transactions such as ACH payments should nevertheless choose a payment processor that supports options for electric check processing and fraud detection. Credit cards are, relative to ACH/EFT payments, more prone to chargebacks. If you’re interested in securing a virtual terminal that you can integrate with your business’s payment processing solutions, we recommend that you choose an online payment processor with systems to combat card-related consumer chargebacks that minimize interruptions to your revenue stream.

Credit cards are prone to chargebacks and tend to be more expensive to process on a per-transaction basis than automated clearing house (ACH)/electronic fund transfer (EFT) payments. Therefore, if you plan on accepting ACH payments online, you’ll likely need a payment gateway. Payment gateways transmit data between an agency’s point of transaction and the receiving payment processor. Certain payment gateways services support ACH payments and may be included as part of a payment processor’s list of basic services. Payment gateways offer an additional level of protection compared to virtual terminals by encrypting payment information before transmitting it to an acquiring bank. These gateways may also support online portals through which users must enter before they can submit their payments online.

6 Tips For Getting Your Collection Agency Merchant Services Application Approved

Now that you’re familiar with the logistics of payment processing you’re likely to navigate, it’s time to consider some tips to get your collection agency approved by an acquiring bank. Consider the following points to more easily smooth over your application process for a collection agency merchant account:

Business Insurance: Every state has its unique requirements that new businesses must adhere to. Agencies in the collections industry are no exception to this fact and should purchase business insurance and a surety bond per the laws set by the state in which they operate. Collection agency owners should also choose from the different types of professional liability insurance to protect their business from lawsuits and claims of negligence that are common to their industry.
Business Registration & EIN: On the topic of state-level requirements, your state likely requires you to register your business and obtain an Employer Identification Number (EIN). Remember to factor in your registration costs when you estimate your business’s startup expenses and purchase your first pieces of payment processing hardware.
Licensing & Bonds: While certain states only ask that new collection agencies register their business, others may require your business to obtain a collection agency license. Double-check your state’s legal requirements for opening a collection agency and get licensed and bonded as soon as possible if you’re required to do so.
Chargeback Ratio: Proof of your business’s chargeback ratio is essential if you want to apply for a collections credit card processing account. Although standards vary, we recommend that you possess a chargeback ratio that’s below one percent, historically. A low chargeback ratio instills confidence in merchant acquiring banks that your business’s revenue stream is not subject to regular interruptions due to an excess of fraudulent chargebacks or chargebacks relating to checks made with insufficient funds.
Functional Website & Site Security: Your business’s website needs to be functional and accessible 24/7 if you want to process as many online payments as possible. This fact is particularly true for collection agencies that use a payment gateway and online portal through which their consumers transmit payments. Your site should also adhere to Visa and Mastercard regulations that apply to the debt collections industry.
Bank & Processing Statements: Though not always required at the state level, it’s a good idea to provide financial statements or other documents such as processing statements that provide your business’s net worth in writing. Proof of a minimum net worth along with financial and processing statements provides acquiring banks the evidence they may need to recognize your business’s stability.

Which Collection Agency Merchant Services Provider Is Right For My Business?

Business owners starting new collection agencies or even expanding existing ones need merchant account providers that minimize the stresses that come with the debt collection industry, not exacerbate them. The path toward getting your collection agency off the ground is rife with hurdles that take the form of legal obligations, a complicated and sometimes bleak industry reputation, and the constant risk of interruption to your business’s revenue. It only makes sense then that the best collection agency merchant account providers offer processing options for multiple payment types and a reliable system to fight chargebacks and fraud.

Consider whether your agency is a relatively low- or high-volume operation, whether you function as an eCommerce or brick-and-mortar business, your chargeback history, and the pricing plans you prefer before you decide on a collection agency merchant account. Even though some providers may appear to be a good fit for you at first, the best payment processors can satisfy your current business needs and grow with your future growth plans.

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Chris Motola

Senior Staff Writer at Merchant Maverick

Chris has been writing about small business topics since 2003. In 2015, he joined Merchant Maverick, where he writes about business financing, payment processing, and demographic trends in entrepreneurship. Chris has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York.

View Chris Motola's professional experience on LinkedIn.

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1. PaymentCloud

❮ ❯

Excellent provider for collection agencies with a strong eCommerce presence.
Chargeback and fraud prevention assistance, PCI-compliance guidance, and training on how to avoid chargebacks.
Starts at $20/month.

2. Host Merchant Services

❮ ❯

A great option for both new and high-volume, established agencies.
Customized interchange-plus pricing plans, no termination penalties, and easy to navigate hardware.
Starts at 0.20% and $0.09 per transaction.

3. Durango Merchant Services

❮ ❯

A great option for new agencies with excessive chargebacks.
Affordable hardware, strong fraud protection, support for TMF or MATCH List merchants.
Starts at $10/month.

4. Soar Payments

❮ ❯

A good choice for agencies that need a quick, but thorough, underwriting process.
Automated application process, chargeback management, and plenty of hardware options.
Custom monthly pricing.