Medical collection agencies carry out important work in the United States and many other countries around the world. Their role is to get the money that is owed on medical bills, as there are many people who receive medical treatment but don’t pay the cash they owe for those treatments. In order to function, medical collection agencies require a medical collection agency merchant account. This guide will go over all you need to know about medical collection agency merchant accounts.
Life can be a fragile thing, and it’s common for people to experience various injuries and illnesses throughout their lives. When something isn’t quite right with your health, the natural thing to do is visit a hospital or clinic and get the healthcare you need to get better. This might be something simple like some treatment for a minor illness, or it could be more serious, like chemotherapy for cancer or life-saving surgery after an auto accident.
In any case, medical services cost a lot of money to carry out, and in the United States, along with certain other countries, it’s up to the recipient of the treatment to pay for the services they received. However, there are many situations in which people receive treatment and then delay or refuse to pay the bills handed to them by hospitals and other healthcare institutions.
This is where medical collection agencies come into play. A medical collection agency is a lot like a debt collection agency but specializes exclusively in debts and bills related to the medical sector. The agency will work to help hospitals and healthcare businesses get paid, tracking down people with debts and taking various actions to recover the money that is owed.
Many Americans have outstanding medical debt that needs to be paid off. In fact, statistics show that approximately half of the US population has some sort of medical debt, with around 57% of those with debt owing at least $1,000, usually related to things like emergency room visits, diagnostic tests, hospitalizations, and so on.
Other studies have shown that medical debt is actually the biggest source of debt sought after by debt collection agencies in the US today. So it’s clear to see that there’s a great need for medical collection agencies and the work they do. That work can take a variety of forms, and different agencies will take different steps to recover money that is owed to their clients.
Agencies will usually begin by contacting the individual in question who owes money to a healthcare institution. If payment isn’t made, further steps may be taken, such as repossession of property and vehicles, as well as filing credit reports, recovering collateral, and potentially taking legal action in situations where people simply refuse to pay.
It’s clear to see that medical collection agencies do important work in today’s world, but if you want to run a successful medical collection agency, you simply have to have a medical collection agency merchant account. What is a medical collection agency merchant account and how do these merchant accounts work? Well, it’s actually quite simple.
Merchant accounts are basically a special type of business account that makes it possible for businesses to process and receive electronic payments from their clients. So, a medical collection agency merchant account is necessary for your agency if you want to be able to get paid over the phone or online.
Once you have a medical collection agency merchant account set up, money from business clients or borrowers can be paid directly into your business account via the merchant account. It’s a simple, secure, and efficient process, and merchant accounts help to facilitate countless digital transactions every single day.
It’s clear to see that you need a medical collection agency merchant account if you want to run a medical collection agency. However, you won’t usually be able to get medical collection agency merchant accounts at your local bank or typical financial institution. Many of these places will refuse to work with you, as they often see debt collection of any kind as a “high risk” industry.
Why are medical collection agencies seen as so risky and dangerous to work with? Well, one of the reasons why medical collection agencies are linked with high-risk credit card processing is because debt collection, in general, involves dealing with people who are in poor financial situations, often with bad credit and a history of debt.
These kinds of people can be unpredictable and may not be able to make payments, so there’s no guarantee that every debt is going to get paid. This can lead to a lot of hassle and inconvenience for banks and other financial institutions who choose to work with debt collection and medical collection agencies.
There’s also the fact that the medical collection agency industry involves a high rate of chargebacks. A chargeback is when someone contacts their bank or credit card company and disputes a payment they have made, for various reasons. Chargebacks cost banks money, so this is another reason why many of them refuse to offer medical collection agency merchant accounts in the first place.
As you can see, there are various challenges and obstacles in the way for medical collection agencies looking for medical collection agency merchant accounts. So what are you supposed to do if you need a medical collection agency merchant account but none of the banks or financial institutions around will offer you one?
Well, Shark Processing is here to help. Shark Processing is an industry leader in the field of high-risk credit card processing and high-risk merchant accounts. It’s our mission to match high-risk businesses like yours with banks and merchant services providers who are willing to work with them. In other words, we can help you get the medical collection agency merchant account you need, right away.
Get in touch with the Shark Processing team today to learn more about what we can do for you. With our help, you’ll be able to open up a medical collection agency merchant account and get to work without any unnecessary delays or inconveniences.