Bail Bond Industry Merchant Accounts A Very Risky Business
Merchant accounts make it possible for all types of businesses to accept credit and debit card payments in exchange for products and services being offered. In today’s world, where plastic is, in most cases, the payment method of choice, just about every type of business needs a merchant account in order to survive and flourish.
The Bail Bond Industry is no exception. No less than $14 billion is paid out in bail every single year. [1] Although it is certainly still acceptable for people to post bond by cash or check, not everyone has the actual funds available to pay their bail, thus they turn to their credit cards to get the job done.
What Exactly Is A Merchant Account?
In order to acquire a merchant account, your firm must establish a working relationship with a bank or credit card processor, that will facilitate the merchant account operation. Specifically, a secondary bank account will be set up for your business, separate and apart from your business’ regular bank account, that will enable your firm to accept payments from credit and debit cards. The money collected will be deposited into the secondary account and will remain there until the payment is processed. Once processing occurs, the money will be deposited into your firm’s regular bank account and will then be officially yours to do with as you will. The entire process can from twenty-four to forty-eight hours to complete.
What Accounts For High Risk Status?
There are a wide variety of reasons that land various firms in the “high risk” category. These can include a business doing a large volume of “high ticket” transactions, the business owner having a poor credit history, the industry itself has a reputation for fraudulent or questionable business practices, not enough or too many regulations in place, as well as there being too large a volume of chargebacks. Any and all of these factors can be responsible for a business’ “high risk” merchant account status.
Bail Bond Industry Considered Very High Risk
As far as obtaining a merchant account goes, the Bail Bond Industry is considered to be a very risky enterprise by the banks and credit card processors, and with good reason. That’s mainly because almost all of the “high risk” factors easily apply to this industry.
In particular, bail bond companies have very “high ticket” transactions; there is absolutely no limit to how much bail can be charged. In addition, the Bail Bond Industry is governed by very many rules and regulations that vary from state to state and have to be followed to the letter. This can be very complicated, leaving way too much room for error. If this isn’t enough for a “high risk” status, this industry is known to have huge, uncontrollable amounts of chargebacks. Once out of jail, bail bonds clientele is very often given to contacting their credit card companies, complaining about their bail bonds company, and demanding their money back. The credit card companies almost always comply, which makes for an enormous chargeback problem. The regular banks and credit card processors feel that given all of the above factors, the Bail Bond Industry is too risky a business to take a chance on.
First Card Payments Has Your Back
Don’t give up! If you’re looking to open a bail bonds company, your “high risk” status for obtaining a merchant account might be scaring you off right now and chasing you in the opposite direction. We know how difficult your situation can be. However, it’s truly not as bad as it seems. You are not alone and there are banks and credit card processors that will take on your business. However, you need to know the best ones for your particular industry.
We’re First Card Payments, a highly experienced and successful “high risk” merchant processor. For twenty years, we’ve been unsurpassed in our ability to help companies like yours obtain and keep their merchant accounts. We know what it takes and who to deal with to get the job done and that’s exactly what we do. And once we’ve got you your merchant account, we’ll stick with you and make sure you keep it.
If you’re ready to have your merchant account headaches disappear, come talk to us. We’ll get your bail bond business on the road to success quickly and easily. We’ve done it for others and we’ll do it for you.
Contact us at: FirstCardPayments.com
Sources:
[1]: Who Really Makes Money Off of Bail Bonds?
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