Billing and collection agencies are generally considered high-risk businesses. This is because they usually incur above average chargeback rates. It is not easy to locate a suitable payment gateway for such companies since the services are not usually willing to work with such high-risk clients. However, some payment gateways have been developed to cater to this specific clientele.
Here are the three top payment gateways for billing and collection agencies:
1. Flagship Merchant Services
This service best suits companies that get high volumes of credit card transactions. Some of its benefits include their lack of cancellation fees and the ability to use it without a contract term. Billing and collection agencies are high-risk industries, and this is why Flagship Merchant Services has a large department dedicated to preventing loss and fraud and minimizing chargebacks. Users of this service also receive round the clock customer support.
Signing up for the service is simple and can be done in multiple ways. It offers some of the lowest rates on the market.
Since its formation in 1998, PayPal has been one of the best payment gateways on the internet. It is available in almost all countries around the world and currently has over 160 million users. That means there is a good chance that a sizeable portion of your clients has a PayPal account. The popularity of the service also shows that it is generally trusted.
Another advantage of the service is the fact that it supports all platforms. You don’t need to go through any integration process since PayPal usually redirects to its own website. Like Flagship Merchant Service, PayPal does not have any contract obligation.
It is important to note that Paypal is not designed to support high-risk industries such a billing and collection agencies. As noted in https://mypaymentsavvy.com/, most payment gateways that offer immediate setup end up being unfavorable for high-risk industries. They also don’t have a support team that can guide you with regard to the risks of the business and may end up freezing your account for some time before eventually terminating it.
The Adyen payment gateway was recently rebranded to Checkout. This service offers indefinite contracts, and early cancellations do not result in any charges. That said, you will have to send a cancellation notice two months in advance.
Adyen is designed with revenue protection features that are meant to reduce chargebacks and card fraud. That being said, the service will readily suspend a payment method for clients who incurs too many chargebacks. Their limit is 0.5 percent of the entire transaction volume in each payment method. In addition to the suspension, the client may also have to pay fines.
An advantage of Adyen is the many payment methods it has. It is also an international service that uses over 150 currencies. It features omnichannel payments, and this means your business can operate in-app, online or in-store.
One of these three services should suit your company. It is advisable to work with a payment gateway that welcomes high-risk clients since these are more likely to have favorable terms.