The payday loan industry, which includes short-term lenders like auto title loan stores and check-cashing services, is a robust segment of the U.S. economy. This industry provides a valuable service to the many Americans who experience a cash crunch, but do not qualify for help through large national banks.
Despite the importance of the services offered by these businesses, like providing installment loans and cash advances to customers in need of emergency funds, the mainstream banking community considers payday lenders to be “high risk.” This means that, in many cases, payday lenders cannot obtain the financial services they need.
If your business offers short-term payday, installment, signature or personal loans, Merchant Card Advisors can help you acquire the financial services you need.
Finding Lender Merchant Processing Solutions
Why are loan stores and loan merchants considered to be so high risk?
The banking and finance industry categorizes businesses this way for a number of reasons, the primary one being the chance of taking a loss. Chargebacks and defaults are common experiences for loan stores — and one of the factors that underwriting financial institutions avoid the most.
Unfortunately, chargebacks are common for payday loan businesses. Further, your customers may already be in financial peril, increasing the risk to your small business. Fraud and identity theft plague the loan merchant industry, proving even more reasons for rejection by the mainstream financial service providers.
We specialize in high-risk merchant services. We are experts in the payment processing needs of small-loans businesses. Merchant Card Advisors can help you find the service package tailored to your small-business needs.
Payment Processing Packages for Short-Term Lenders
Since small-lender businesses are considered risky, large national banks typically reject their applications for merchant services or credit card payment processing.
For many small businesses and merchants, the main alternatives to the large national banks are aggregate payment processors. These service providers offer quick acceptance for small businesses and may approve an application from a lending business. However, these providers are quick to discontinue their services once they discover the nature of the small lender’s transactions. This can leave you with no payment processing services. You could even potentially be locked out of acquiring merchant services in the future.
We can help you avoid the pitfalls of trying mainstream payment processing providers and provide the full-service solutions you need for your business success.
The Best Payday Loan Merchant Account Solutions Available Today
The good news is that Merchant Card Advisors understands high-risk business industries like yours. We understand how to address the merchant services needs of the small lender community.
As a lender merchant, you face a particular set of challenges, from chargebacks and defaults to fraud and identity theft. The security and verification of your transactions is of the utmost importance.
We can help you address these challenges and provide you with options that the mainstream banks won’t. We’ll help set up a complete merchant services package for your lending business. We can also help you with training, hardware, software and tools to address your specific business needs.
Contact Merchant Card Advisors today to learn more about our payday and auto title merchant processing services.