Payday Lending Payment Processing | National Merchants (2024)

High RiskA merchant that is considered a high risk based upon the credit, product, method, ticket size or volume. Examples of high risk merchants are telemarketing, adult and travel related industries. Done Right®

Operating in cash only? Paying too much to accept payments? Can’t get approved?

Payday lending and other short-term lending programs are at times a necessary and valuable service for consumers needing to make ends meet. However, many regulators and acquiring banks make it difficult for these businesses to acquire electronic processing.

Due to the actions of a few malicious establishments, the payday lending industry has gained a negative reputation with financial institutions. This shouldn’t affect the ability of legitimate payday businesses to deliver lending options.

Payday lending businesses can count on NMA.

  • Merit-based business analysis
  • Industry type or specific business models do not define approvals

Experience a superior merchant account.

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Change is Good. And it’s Easy.

Switching merchantA business that accepts credit cards for goods or services. service providers shouldn’t negatively impact a business’ bottom line – it should benefit it. That’s why NMA makes the change seamless, frictionless, and profitable.

NMA has enhanced solutions catered to high-risk industries:

Payday Lending Payment Processing | National Merchants (1)Dedicated account reps

Payday Lending Payment Processing | National Merchants (2)In-depth knowledge of both payments and payday lending

Payday Lending Payment Processing | National Merchants (3)In-house underwriting and risk mitigation

Payday Lending Payment Processing | National Merchants (4)Customized pricing and optimization – no price gouging

Payday lenders can feel confident switching to NMA. It’s not just changing to a new merchantA business that accepts credit cards for goods or services. account, it’s growing good business.

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Accepted Business Types›

What To Expect›

Accepted Business Types

Payday loans, also known as salary loans, payday advances, and cash advances, are considered a high-risk industry by the card brands and acquiring banks, but are still permitted merchantA business that accepts credit cards for goods or services. accounts with the right due diligence. NMA accepts the following business types:

  • Short term lenders
  • Brick and mortar payday lenders
  • Brick and mortar consumer lending
  • Cash advance merchants
  • Other alternative financial services

Looking for an e-commerce merchantA business that accepts credit cards for goods or services. account? NMA offers merchantA business that accepts credit cards for goods or services. accounts to an extensive list of e-commerce, card-not-presentA merchant environment where the cardholder (and the card) is not physically present at the time of purchase. Typical card-not-present transactions take place in businesses focused on mail order/telephone order, business-to-business, and Internet-based transactions.... businesses – typically classified as high-risk. Learn more about our high-risk merchantA business that accepts credit cards for goods or services. accounts, or reach out directly to speak with one of NMA’s high-risk experts.
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Why It’s High-Risk

It’s difficult for payday lenders to acquire merchantA business that accepts credit cards for goods or services. processing due to many factors.

The payday lending industry has an extensive regulatory history, involving consumer financial protection laws and restrictions on facets of short term loans, such as APR caps and outright prevention of such loans in various states.

These substantial regulations cause stakeholders in the payments industry to tread lightly when considering the liability of approving payday lending merchantA business that accepts credit cards for goods or services. accounts.

Banks are wary of the clientele, who may have bad credit and a history of making damaging financial decisions. This can lead to non-payment on loans, transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... disputes and more.

Financial institutions are also cautious in light of the numerous Consumer Financial Protection Bureau (CFPB) lawsuits against bad players in the payday industry. The intensity of these alleged abusive business practices has caused acquirers to place payday lenders on the prohibited list for merchantA business that accepts credit cards for goods or services. processing.

The high-risk label doesn’t have to be a scarlet letter for payday lenders. It’s just a signal to the real experts in payment processing, who have expertise in what really matters – approving and maintaining high riskA merchant that is considered a high risk based upon the credit, product, method, ticket size or volume. Examples of high risk merchants are telemarketing, adult and travel related industries. merchantA business that accepts credit cards for goods or services. accounts.

Challenge:

Regulatory and compliance concerns prevent some acquirers from approving payday lenders for merchantA business that accepts credit cards for goods or services. accounts.

Solution:

NMA never declines a high-risk merchantA business that accepts credit cards for goods or services. due to industry type.

Challenge:

Many merchantA business that accepts credit cards for goods or services. processing solutions catered to high-risk businesses aren’t extensive enough.

Solution:

NMA offers a wide range of services catered to the needs of a payday lending business, including check services, ACHAutomated Clearing House (ACH) is an electronic payment Network that exchanges funds via Electronic Funds Transfer (EFT) throughout the U.S. Over 98% of the nation’s banks including the Federal Reserve belong to the ACH. ACH is the paperless funds transfer system maintained by the Federal Reserve or other entities that have networks to exchange electronic funds transfer items...., PINPersonal Identification Number used by a cardholder to authenticate card ownership for ATM or debit card transactions. The cardholder enters his/her PIN into a PIN pad. The PIN is required to complete an ATM/debit card transaction. debit, merchantA business that accepts credit cards for goods or services. cash advances, recurring billing and high volume payment solutions.

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What to Expect

NMA knows the consumer lending space – better yet, we know high-risk merchantA business that accepts credit cards for goods or services. services. Understanding each payday lending business individually ensures that a custom payment processing solution is provided. We assess risk and recommend solutions based on actual data and business history.

What to expect when partnering with NMA:

  • A consultative approach to understanding merchantA business that accepts credit cards for goods or services. account needs
  • A simple, easy application process
  • Efficient and quick MIDA number that numerically identifies each merchant to the merchant processor for accounting and billing purposes. approvals

The NMA underwriting team ensures that all documentation is acquired, solutions that best benefit the payday lender will be implemented, and the complete merchantA business that accepts credit cards for goods or services. account package is ready for approval and setup.

From the second the merchantA business that accepts credit cards for goods or services. account goes live, the experts at NMA actively monitor the account to mitigate risk and sustain the health of the business.

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CFPB To Reconsider Payday Lending Rules

The CFPB announced that it will be reconsidering controversial new rules that would have dramatically altered the payday lending industry.

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CFPB Supports Reconsideration Of Payday Rule

Payday and short-term lending is an approximately $6 billion-a-year industry, one that both critics and supporters of payday lending agree will take a major hit if the [new payday lending] rules went through.

Read More

Payday lending in California shrunk by almost 7% last year

Californians relied less heavily on payday loans in 2017, according to new data that could reflect the state’s strong economy as well as recent changes in the structure of the small-dollar loan industry.

Read More

Payday Lending Payment Processing | National Merchants (2024)

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