Are You in Need of Opening a Payday Lenders Merchant Account?
Double Helix Processing prides itself on being the leading payment processing company in the industry for all of the various types of payday loan merchant account related businesses; from cash advances, title loans, short-term loan providers, and everything in between. Are you looking to set up your payday lenders merchant account? Look no farther than Double Helix Processing.
We take great pride in what we do, and that is why we’re so efficient at what we do. We take the time required to learn and understand our merchants and their specific business needs, and with that, we’ve come to fully understand the growing demand for businesses in the payday industry. And it’s one that is growing with good reason with over 20,000 payday loan companies nationwide, bringing in $40+ billion in the US. Double Helix Processing offers a variety of options available for those seeking a payday lender merchant account through many means such as high-risk credit card processing, payment gateway, and tools to help you manage your chargebacks.
Have You Recently Lost your Payment Processing for Your Payday Lenders Merchant Account?
You decide to open a profitable business in payday loans and shop around applying for credit card processors hoping to get approved. However, pretty much all the merchant account providers you apply with will take your application for your payday loan merchant account, yet very few institutions will actually be able to give you an approval.
When it comes to applying at traditional banks like Chase, Bank of America and Wells Fargo, these large sponsor banks do not provide merchant services for business that offer short-term or payday loans.
So, you’re likely to become quickly frustrated with the process of applying and running your credit, over and over, only to receive rejections and declined applications. You will need to seek out a merchant account provider who has established relationships and a proven track record with sponsor banks for your specific type of industry, which will require a high-risk merchant account.
Save yourself the trouble of going to big banks and being turned away and look to industry experts, like Double Helix Processing, for your payday loan merchant account and secure the stability and longevity of your merchant account so that you are able to successfully accept debit and credit card payments.
Why Does this Matter and How Can Double Helix Processing Help with my Payday Lender Merchant Account?
When your business falls into the category of a high risk merchant, the only real solution you have for payment processing (other than to try your luck with larger financial institutions like Chase, Bank of America or Wells Fargo) is to find a company that offers a high risk merchant accounts. Aggregate payment processors like PayPal, Stripe, Square and others do not allow payment processing for high risk businesses like those who are in the payday loan industry.
Because payment processors like PayPal, Stripe, Square and others do not do their underwriting at the time of application, it is likely that your payday lender merchant account will initially be accepted at the time of applying. However, once the company reviews the processing account afterwards, they will quickly inform you that they do not accept payday lender merchant accounts and will immediately shut down your account and freeze your account. That means that you will have no credit card payments being processed until you find another processor that specializes in high risk.
Just because a payday lender merchant accounts are classified as high risk (which happen for a variety of reasons) that does not mean that there aren’t solutions out there for you. However, it does make things very difficult in terms of finding a reliable processing partner. Luckily, Double Helix Processing specializes in working with high risk merchants, and we have multiple acquiring banking partners that offer payday lenders merchant accounts.
How Does Being High Risk Affect Your Chances of Getting a Payday Lender Merchant Account?
The main complication for payday lender merchant accounts being classified as high risk is due to the excessive number of chargebacks, also known as a company’s chargeback ratio. When chargebacks occur, they may go unpaid by the business owner or merchant, which is known as one of the most significant losses of financial growth for credit card processors, which are closely monitored by both the sponsor banks and debit or credit card brands (like Mastercard, Visa, AmEx, etc.).
Sponsor banks will shut down any payday lender merchant account that regularly exceeds more than 1% in chargebacks and will Kiely add fees to the bill of whatever payment processor that set up your merchant account. Due to the clientele and ticket sizes of payday loan merchant, chargebacks are a common occurrence and are typically seen by financial sponsors in especially high numbers.
The clientele itself is a huge proponent of why payday lender businesses are considered high risk; the type of customer who would need a payday loan are those who are financially in a position of need to get their hands on some quick cash. The terms of their loan would require a repayment with various terms, which typically made in the form of a debit card payment, and in turn can be easily charged back within the chargeback window of opportunity to resolve the customer’s cash flow problems. This unfortunately happens at your expense.
This is a common problem within the pay day industry, and the ratio of chargebacks that occur for payday lender merchants, most traditional banks won’t even consider offering payment processing solutions to such a high-risk business model. There is simply just too much of a liability and too much uncertainty involved.
Avoid being dropped by one of these fair weather banks or worse, having your payday lender merchant account frozen or completely shut down, and start off on the right foot with a payment processing company who knows the unique needs of your business and how to effectively meet them.
Double Helix Processing has solutions for the following types of payday loan merchant accounts:
- Check cashing services
- Personal loans
- Short-term unsecured loan providers
- Check drafting services
- Student loans
- Fringe financial services
- Title loans
- Business loans
- Money orders
Why Should You Choose Double Helix Processing?
We understand the unique needs of the different Pay Day Lenders related business types and have established numerous acquiring banking relationships to become your best resource in getting Pay Day Lenders merchant accounts set up and accepting online payments. Our expertise is your ticket to getting the stable processing you need to further your business.