Debt collection is one of the highest-risk merchant categories in payment processing — high chargeback rates, regulatory scrutiny, and the nature of the collections relationship make standard processors avoid the industry entirely. We work with acquiring banks that are built for it.
When a debtor disputes a payment, they often win the chargeback even when the collection is valid — simply because the circumstances of the original debt are complex. Processors see high chargeback rates in this industry and either refuse to approve or terminate accounts quickly. Specialized underwriting is the answer.
Yes — licensed Texas debt collection agencies (TDCA licensed) can accept credit cards. The key is working with a processor that has properly underwritten for the collection industry.
High-risk collection accounts typically have agreed-upon chargeback thresholds of 2–3%, compared to 1% for standard merchants. This is negotiated upfront.
Yes — we work with both third-party collectors and debt buyers. The account setup and underwriting differs slightly but both are available through our acquiring partners.
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