High Risk Merchant Handbook

Debt Collection Merchant Account

Here is the MCC for debt collection, what Visa asks acquirers to check, and how to apply honestly.

A debt collection merchant account lets your agency take card payments. Visa has its own rules for this category. Knowing the rules helps you apply the right way.

Your account and your processor's bank

 Your account sits inside your processor's bank relationship. Read [why banks watch payment processors](/underwriting-and-reserves/why-banks-watch-processor-accounts) to see how that works.

The MCC that applies to collection agencies

Visa's manual says MCC 7322 is for collection agencies that collect overdue receivables under contract or bought from a third party. Visa's rules go further. They say a charge for a charged off debt or receivable must get MCC 7322, Collection Agencies.

This code matters because it tells the card networks what you do. Use the code that fits what you do.

How acquirers assess your application

Visa's standards say acquirers assess a merchant's creditworthiness by looking at credit history, financial statements, debts and public records. Expect to give financial statements. Expect questions about your own debts too. Public records about you may come up too.

What one processor's policy says

Stripe's restricted businesses list prohibits debt settlement, debt negotiation, and debt consolidation. That is Stripe's own policy, and it applies to Stripe. Other processors set their own rules. Read the restricted list before you apply.

Stripe's list names debt settlement, debt negotiation and debt consolidation. It does not say the same thing about every form of debt collection. Check the current list yourself.

The Telemarketing Sales Rule and collected funds

If you sell debt relief services by phone, the FTC has a rule for you. The Telemarketing Sales Rule says a customer owns the funds held in an account at an insured financial institution for a debt relief service. The money a customer pays in is the customer's money, not yours. Ask a lawyer how this rule applies to you.

Phone sales have their own rules on billing authorization too.

How to prepare an honest application

Say plainly that you are a collection agency. Give the MCC that fits. Give the underwriter the financial statements it asks for. Explain how funds flow from the debtor to the creditor, and where your fee comes out.

What never to do

Do not use the wrong MCC to look like a less risky business. Do not split your volume across several processors to hide what you do. Do not hide the debt relief side of the business under a vague description. An honest no from one processor is better than a yes built on a lie.

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