Collection agencies & debt buyers
Collections agencies must adhere to stringent regulations, tackle high chargeback ratios, and build trust both with customers and their banking partners. Because of these challenges, many banks and payment processors refuse to underwrite these accounts.
Apply in 60 seconds
Tell us about your agency. It's free to apply.
Your information is encrypted & never shared.
Adaptiv is a merchant service provider for debt collectors, with years of experience tackling the challenges unique to this industry. We offer advanced chargeback prevention, industry-standard data security measures, and personalized support to help you comply with complex financial regulations.
Collection agencies, debt buyers and ARM firms
A collection agency merchant account is a specialized, intermediary account that holds funds before they are deposited into your business bank account. Once a consumer initiates a payment through a gateway, the money is transferred to your merchant account before the process is settled.
You can't accept credit card payments without this account, making it a fundamental part of your payment ecosystem. However, many traditional processors don't work with high-risk industries like debt collection, so you must find merchant account services designed to meet your needs.
Adaptiv facilitates smooth electronic transactions while helping you remain compliant with the industry's strict regulations. We use the highest data security measures available, keeping both you and your clients safe from data breaches.
Whether you need a collection agency merchant account or debt collection merchant services for a law firm, we work with every kind of collections business.
Third-party collection agencies
Collecting for creditors on contract
MCC 7322
Debt buyers
Collecting purchased portfolios
MCC 7322
Accounts receivable management
ARM firms and early-out programs
MCC 7322
Collection law firms
Attorneys collecting consumer and commercial debt
MCC 8111
Medical billing & collections
Patient balances and self-pay accounts
First-party collections
Creditors collecting their own accounts
Utility & telecom recovery
Final bills and past-due accounts
Auto finance recovery
Deficiency balances and past-due loans
Commercial collections
Business-to-business receivables
Payment plan portals
Online portals for installment plans
Collection agencies and debt buyers use MCC 7322. Visa requires it for payments on charged-off debt from July 25, 2026.
Our customized payment solutions help you avoid chargebacks, navigate industry regulations, and improve cash flow, all at competitive rates and with personalized service. Our streamlined application procedure gets you funded faster than ever, and our team is there every step of the way to help onboard you with ease.
Payment plans are common in the debt collection industry, as many clients have unreliable income streams that prevent them from paying everything up front. With Adaptiv, you can set up a range of payment plan types, including fixed or flexible installment plans or scheduled one-time transfers.
Payment monitoring systems can send automatic reminders to your clients, which helps improve revenue. Under Regulation F, email and text reminders need a simple way to opt out. You can track recovery rates and cash flow using our detailed reporting systems, making it simple to identify areas of improvement.
The debt collection industry is tightly regulated, including the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA). Certain states have additional regulations surrounding debt collection, meant to prevent consumers from being unfairly harassed or penalized for unpaid balances.
Navigating federal and state regulations can be challenging, but Adaptiv is here to help. Our payment processing solutions include compliance features like accurate payment descriptors, PCI-DSS compliant data handling, consent management, and compliant notifications.
With our services, you can mitigate legal risk while maintaining efficient operations, all while boosting your recovery rates.
Our payment solutions integrate seamlessly with popular debt collection management systems, ensuring unified workflows between your collection activities and payment processing. This integration enables real-time payment tracking, automated updates to debtor accounts, and comprehensive financial reporting. By synchronizing payment data with your collection software, you can enhance operational efficiency and maintain accurate records of all recovery efforts.
Traditional banks and processors are hesitant to serve the debt collection industry, which can make it hard to offer excellent service to your clients. Reasons why these businesses are considered high risk include:
Stripe prohibits debt collection agencies, and PayPal bans refinancing debt with a credit card. An agency that signs up anyway can lose its account and have funds held.
| Stripe & PayPal | Adaptiv merchant account | |
|---|---|---|
| Debt collection policy | Stripe prohibits it; PayPal restricts debt payments | Underwritten for collections before you go live |
| Visa debt repayment rules | Not set up for you | MCC 7322 and the debt repayment flag set up |
| Payment plans | Basic subscriptions | Recurring payments by card, ACH and eCheck |
| Your account | Pooled under the aggregator | Your own merchant account and MID |
| Chargeback tools | Basic dispute handling | Alerts, RDR and 3D Secure set up for you |
| Support | A ticket queue | A dedicated account manager |
Not every processing solution will be the right fit for your company. As such, it's crucial that you know what to look for when choosing a payment partner. Consider these key features:
We have a streamlined underwriting process that is tailored to these business models. To get started, you'll need some of these required documents:
Business registration
Plus business insurance
Collection agency licenses
For each state where you collect
Tax ID & photo ID
For the principal business owner
Financial statements
Proof of financial stability
Bank & processing statements
Including your processing history
Validation notice
A sample of the notice you send consumers
Fee schedule
Any convenience fees and what allows them
Expected volume
Monthly transactions and average payment
Apply online
The online application takes about a minute. Tell us about your agency, what you collect and your monthly volume.
Send your documents
We collect your licenses, statements and sample notices, and tell you exactly what's missing.
Underwriting
We review your collection model and processing history and match you with the right bank.
Set up your payments
We connect your collection software, payment portal and virtual terminal so you can collect payments online and by phone, with MCC 7322 and Visa's debt repayment flag in place.
Start collecting
Go live with recurring payment plans and chargeback alerts. We watch your ratios and raise your limits as you grow.
Visa has its own rules for card payments on debt, and they changed in 2026. Getting them right keeps your account in good standing.
Visa treats any payment on a debt, including written-off and sold debt, as debt repayment, and it can't go on a Visa credit or charge card. Debtors can still pay with Visa debit and prepaid cards.
Debt payments carry Visa's debt repayment indicator under MCC 6012, 6051 or 7322. From July 25, 2026, charged-off debt has to use MCC 7322.
Before the payment, collectors must show the original creditor, the account or reference number and how to get more information, and let the cardholder cancel. The receipt names the original creditor too.
A card payment on time-barred debt needs the cardholder's written agreement to the charge and the amount.
Debt collection businesses can ensure compliance and prevent chargebacks through these key strategies:
Acquiring banks look at your licenses, your collection practices and whether your disputes stay under the card networks' limits.
Send one in your first communication or within five days, and stop collecting on a written dispute until you verify.
Reg F presumes compliance at no more than 7 calls in 7 days per debt.
No contact before 8 a.m. or after 9 p.m. in the consumer's local time.
Many states require a collection agency license and bond.
Never threaten a lawsuit or action you can't take or don't intend to take.
Only when the agreement or the law allows them, and never on Visa recurring or installment payments.
Our comprehensive payment processing solutions address the many challenges faced by collections agencies to ensure steady income and a convenient user experience. Rather than struggling to walk users through payment methods, your team can focus on following up with users and identifying new business opportunities. With Adaptiv, you'll enjoy:
Adaptiv is a dependable partner whose industry experts understand your distinct needs. Our highly secure and customized processing solutions mitigate risk, ensure compliance, and enable long-term business growth. Contact us today to learn more about our personalized services and discuss how we can help streamline your operations.
See why so many people choose Adaptiv as their credit card processing company.
“After struggling to find a payment processor who understood our debt recovery business model, Adaptiv stepped in and provided us with a reliable merchant account. Their payment plan management tools have significantly improved our recovery rates.”
“The regulatory landscape for debt collection is challenging, but Adaptiv's compliance expertise has been invaluable. Their payment system integrates perfectly with our collection software, and we've seen a 30% increase in successful payment arrangements.”
“As a growing collection agency, we needed a solution that could scale with our business and handle various payment methods securely. Adaptiv delivered exactly what we needed - reliable processing with robust compliance features.”
A collection agency merchant account is a specialized account that serves as a holding account after a payment is initiated by a customer. The payment gateway verifies the transaction and transfers the funds to this merchant account, then deposits it in your business bank account once the balance is settled. You cannot accept credit card payments without this service.
Debt collectors are considered high-risk because of the stringent regulations and negative perception surrounding the industry. Collections agencies often have unreliable revenue streams, and clients may initiate chargebacks due to concerns about fraud or remorse over paying their outstanding debts. As such, these companies need reliable merchant account services from high-risk processors like Adaptiv.
These accounts help you accept payments online and process credit card payments, which is crucial to making money. Our compliance experts can help you adhere to industry regulations and can help you set up installment billing, improving recovery rates. Additionally, our accounts come with next-level data security, such as behavioral analysis and real-time monitoring, which prevents fraud and mitigates potential chargebacks. With these services, you can enjoy faster business growth and a stronger reputation.
MCC 7322 Collection Agencies, for businesses that collect overdue receivables for others or collect debts they've bought. From July 25, 2026, Visa requires payments on charged-off debt to use MCC 7322.
Usually not. Stripe lists debt collection agencies as prohibited, and PayPal prohibits refinancing debts with a credit card. A dedicated high-risk merchant account is the reliable option.
Yes. Collection law firms often process under MCC 8111 Legal Services, and we approve them along with collection agencies, debt buyers and accounts receivable management firms.
We have a streamlined underwriting process that is tailored to these business models. To get started, you'll need some of these required documents:
Our team will guide you through the application process and discuss our beneficial tools, such as chargeback management, fraud detection, and virtual terminals. With our high-risk processing services, you can improve your banking relations and enjoy steady revenue streams.
In many states, yes. Licensing and bonding rules vary by state, so we ask for your licenses for each state where you collect when you apply.
Often, yes. Many collection agencies come to us after a processor closed their account. We look at why it happened and what's changed. We also work with merchants on the MATCH list.
It depends on your history and how you collect. New agencies and a high chargeback history can mean a rolling reserve. Collection agencies with clean processing history often start with a low reserve or none.
Yes, this is one of the best benefits of working with Adaptiv. We make recurring online payments easy and stress-free, both for you and users. Clients can set up credit card payments, ACH payments, and more on a monthly or quarterly basis. We use robust fraud detection tools to prevent chargebacks for installment payments, reducing your overhead and enabling you to focus on your daily business operations.
One rule to know: Visa doesn't allow debt payments on Visa credit cards, so debtors pay with Visa debit or prepaid cards, ACH or eCheck.
Not with a Visa credit card. Visa treats payments on a debt, including written-off and sold debt, as debt repayment transactions, and those can't be made with a Visa credit or charge card. Debtors can pay with Visa debit and prepaid cards, ACH or eCheck, and we confirm which card types you can accept when you apply.
Debt payments must carry Visa's debt repayment indicator and use MCC 6012, 6051 or 7322, and the receipt has to show the name of the original creditor. Time-barred debt also needs the cardholder's written agreement to the charge and the amount.
Only if the agreement that created the debt expressly allows it or the law permits it, under the FDCPA and Regulation F, and some states restrict them further. Visa also has its own rules: a flat fee, only for card-not-present payments through an alternative channel, disclosed before the payment, and never on recurring or installment payments.
The FDCPA is the primary law that governs debt collectors. This law details the conditions for collection, including not calling individuals at unreasonable hours, harassing them for payment, or threatening legal action they can't take or don't intend to take.
Collectors must send a validation notice in their first communication or within five days after it. The validation period ends 30 days after the consumer receives the notice, and if they dispute the debt in writing during that time, you have to stop collecting until you send verification. You can't charge fees unless the agreement that created the debt expressly allows them or the law permits them, and you must keep records until three years after your last collection activity on the debt.
Our merchant services include compliance support, ensuring that you maintain strong banking relationships and a reputation for fair collections practices.
30 days after the consumer receives your validation notice. Reg F lets you assume they received it five business days after you sent it, excluding weekends and federal holidays, and the notice has to state the end date.
Regulation F presumes you're within the law if you call about a particular debt no more than 7 times in 7 days, and not within 7 days after a phone conversation about that debt. Contact before 8 a.m. or after 9 p.m. local time is presumed inconvenient.
Mostly friendly fraud: a debtor who agreed to a payment later disputes it as unauthorized, or disputes the debt itself through their card issuer. Signed payment authorizations, recorded consent and a descriptor debtors recognize are your best evidence.
Visa's VAMP program flags merchants at a 1.5% fraud-and-dispute ratio with at least 1,500 disputes and fraud reports in a month, and Mastercard starts at 1.5% and 100 chargebacks. Banks act well before that, so aim to stay under 1%.
More financial services & high-value goods businesses we approve.
Complete the form below to get started with your application. Our payment specialists will review your information and contact you shortly.