Debt Collection Credit Card Processing: Understanding the Costs

Debt collection can be a challenging and stressful process, both for debtors and collectors. When it comes to collecting payments from debtors, credit card processing is a common method used by many debt collection agencies. However, this method comes with various costs and fees that must be understood to ensure that debt collection is done effectively and efficiently. In this blog post, we will delve into debt collection credit card processing, how it works, and the costs involved.

  • Get fast approvals
  • Fraud and chargeback prevention
  • Highly simple application process
  • Enjoy low cost services
Connect to live Agent

Every Xccept POS system comes with peace of mind

You need a payment system that is fast, easy, and smart. You need a payment system that can keep up with the latest technologies. Xccept is your solution. Our payment system accepts all types of payments- credit cards, debit cards, gift cards, and contactless payments.

Managment

Free Overnight Shipping

Once approved, your system will arrive in as little as one business day.

Payment

Fast and Simple Set up

Set up your business account in minutes and start taking payments today!

System

Rates You Can Count On

Pay the same low rates for all cards, including AMEX and rewards cards.

24/7 Expert Live Help

24/7 Expert Live Help

Got a problem, we’re here to help no problem is too small…seriously!

How Debt Collection Credit Card Processing Works

Debt collection credit card processing is a payment method that allows debtors to make payments on their debts using their credit cards. Debtors provide their credit card information to the collection agency, which then processes the payment through a credit card processing company. The collection agency receives the payment from the credit card processing company, minus the processing fees.

Debt collection credit card processing is a convenient payment method for debtors, as they can make payments using their credit cards from the comfort of their own homes. This payment method also allows debt collectors to receive payments quickly, which helps to improve their cash flow and reduce the risk of default.

Who Pays Credit Card Processing Fees?

When it comes to debt collection credit card processing, the question of who pays the processing fees arises. Generally, the processing fees are paid by the merchant or the collection agency in this case. However, some collection agencies may require debtors to pay the processing fees as part of their payment. This is something that should be clearly outlined in the agreement between the debtor and the collection agency.

It’s important to note that processing fees vary depending on the payment method used. Credit card processing fees are generally higher than other payment methods, such as ACH or e-check payments. The higher fees are due to the added security and convenience that credit card payments provide.

Reducing Credit Card Processing Fees

Reducing credit card processing fees can help debt collection agencies save money in the long run. One way to reduce fees is to negotiate with credit card processing companies for lower rates. Debt collection agencies can also consider using alternative payment methods, such as ACH or e-check payments, which have lower processing fees than credit card payments.

What’s next?
Debt collection credit card processing can be a convenient and effective payment method for both debtors and collectors. However, it’s important to understand the costs and fees involved to ensure that debt collection is done efficiently and cost-effectively. By understanding the different types of fees and how they work, debt collection agencies can make informed decisions about which payment methods to use and how to reduce processing fees. At Xccept.com, we specialize in debt collection credit card processing and can help

At Quote

As a debt collection business, our success depends on our ability to recover funds while maintaining positive relationships with both our clients and their customers. Utilizing a reliable and secure credit card processing service like Xccept.com allows us to do just that, ensuring timely and accurate payments while protecting sensitive financial information.

Mike T.

Business Owner

ELIMINATE PROCESSING FEES

Payment Processing Technologies Made Easy

One-Click Technology

Send invoices via email or SMS text message so customers can pay with one click.

Notification Alert

Instantly send payment reminders so you don’t spend time chasing late payments.

Direct Invoice System

Invoice your customers directly from SwipeSimple and never pay for printing & postage again.

Compatibility

Xccept.com is compatible with 95% of current POS systems with zero downtime.

Xccept

Xccept Payment

Business Solutions

  • Enterprise Payment Processing
  • Xccept Point of Sale
  • Cash Discount Surcharging
  • Free Fees Processing
  • Integrations

Resources

Business Type

For legal Reasons

Xccept is a registered ISO of PNC Bank, N.A., Pittsburgh, PA -Member FDIC; Woodforest National Bank, The Woodlands Texas; Citizens Bank, N.A., Providence, RI; Wells Fargo Bank, N.A., Concord, CA.

© xccept – All Rights Reserved