High-risk industries are very profitable but that comes with a catch. The catch is that these profits come at a risk of difficult payment processing. If you already have a business in any of the high-risk industries, you would know I am inferring to. High-risk merchants, especially the news, face this risk every day. As a matter of fact, banks and financial institutions that do provide payment processing for high-risk industries offer high-interest rates too. However, despite all the information stated above, it is still not clear why the high-risk industry is in such bad terms with the financial system all over the world. In this blog, we will be focusing on the understanding part of the high-risk industries. There will be three components to this understanding.
Collection Agency Payments
In the United States of America, you are not really a true American citizen if you don’t have any debt. That is actually a norm here these days. You must be thinking it’s a joke, right? It is not. The total consumer debt in the United States of America is a little over USD 11.5 trillion. This huge figure includes house loads, vehicle loans, mortgages, credit card bills, and how can we forget about the infamous student loans. It would not be hard to imagine that there might be more debt collecting agencies in the United States than bees. As per the latest survey, there are approximately 8514 debt collection agencies in the USA.
Given the presence of debt collection agencies in a county where debt is like bread and butter, one would think that debt collection is a great business. But the reality is that it is categorized as a high-risk industry. Affordable and dependable merchant credit card processing and other payment processing partners are difficult to find.
Payment Processors and their Reputation at Risk
Payment processors are valued all over the country as they help retrieve money that was owed or was withheld. But then why are they given the stick when financial institutions and banks come into the equation? This is because it often happens that debt collection agencies use dirty tactics to operate their business. This adds up to their reputation as a business house. These tactics often include harassing people for money. In such a scenario, banks and financial institutions would obviously vary about debt collection agencies.
You need to understand here that the example of debt collection agencies was just for creating an understanding. This case can also be applied to all the other high-risk merchants with a different set of reasons for banks to distrust them.
Collection Merchant Accounts
At the end of the day, the solution for all these troubles lies in the availability of trustworthy, dependable, and skilled ‘high-risk’ merchant account providers who can ease the payment processing procedures and make it easy for high risk merchants to do their business. Organizations like Global eChecks are among the topmost high-risk merchant account providers that deal in payment processing with the help of eChecks. The benefits of an elite payment processor are obvious. The most important one that you, as a high-risk merchant should be concerned about is that you no longer have to dwell on the dependency on banks as your sole payment processor.
Hope this information helped.
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