Industry

Debt Collection Merchant Account

Specialized merchant accounts for licensed third-party debt collectors and debt buyers. FDCPA-compliant underwriting, recurring payment plans, and ACH + card processing under one MID.

  • Third-party collectors, debt buyers, medical debt, judgment recovery
  • ACH + card processing on a single MID
  • Recurring payment plans with tokenized rebills
  • FDCPA-compliant disclosures reviewed pre-submission
  • State licensing verified before underwriting
  • Consumer portal integrations (CollectMORE, Latitude, DAKCS)
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Why this is classified high risk

Debt collection is universally prohibited by aggregators and most low-risk processors because of FDCPA / CFPB litigation exposure, high chargeback potential, and consumer-complaint sensitivity. Even properly-licensed collectors get shut down by Stripe and PayPal within weeks of detection.

Real placement requires an acquirer experienced with debt MCCs (7322) who understands the difference between first-party in-house collections, third-party agencies, and debt buyers — each prices and underwrites differently.

Features included

ACH + card together

Most consumer settlements pay ACH; card is for partial payments. Both on one statement, one reconciliation.

Recurring plans

Tokenized cards for monthly payment arrangements with retry logic and account updater.

Consumer portal-ready

Direct integrations with the major collection management platforms.

Compliance review

We screen your call scripts, e-sign flow, and disclosure language before the acquirer does.

Underwriting documents you'll need

  • State collection agency license(s)
  • Surety bond documentation
  • Merchant application + voided check
  • Last 3 months bank + processing statements
  • FDCPA-compliant consumer-facing payment page
  • Sample call scripts and validation notices

Pricing factors

Debt collection pricing ranges 2.95% – 4.45% + $0.30 for card and $0.50 – $1.25 per ACH item. Reserves typically 5–10% rolling 180 days.

First-party in-house collectors and medical-debt collectors with low complaint ratios price toward the low end. Purchased-debt portfolios and judgment-recovery files price mid-range.

Frequently asked questions

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