Payday Loan Merchant Account

High-Risk Merchant Services for Your Payday Lending Business

You’re in good hands with our high-risk merchant account experts.

We specialize in high-risk payment processing and take the time to get to know your business, so you can be confident in your merchant services, no matter your business type:

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

Payday loan merchant account application

Fill out the form and we’ll be in touch as soon as possible.

The Full-Service Payday Loan Merchant Account Company

Payments

Servicing customers and clients wherever they find you... we do it all.

• Online
• In-Store
• Mobile

Products

Full customization and control to meet your all your business needs.

• Equipment/POS
• ACH Processing
• Integration
• Surcharge/Cash Discount Processing
• Check & eCheck Processing
• Gift Cards & Loyalty Programs

Services

Specialties that make us the top one-stop-shop for merchant services.

• High Risk Processing
• Capital
• ATM
• EBT

What's a Payday Lender Merchant Account?

Payday lender merchant accounts allow short-term loan companies such as payday lenders and title loans stores to process credit cards, debit cards, and other high-risk payments. For billing on these loans, lenders typically need a way to process payments. A recurring automated payment option can be used to automatically pay pre-agreed amounts according to a set schedule. Call our billing experts to talk about your billing needs. We have the experience to create just the right solution for you.

Who Needs a Payday Lending Merchant Account?

The payday lending industry has grown stronger in recent years. The industry serves the unbankable section of society and provides a valuable service to millions of American households who have short-term cash flow issues with no other means of making ends meet. It's estimated that payday loan locations in the United States offer short-term credit of more than $38 billion to millions of Americans. Many people find that a payday loan is a "lifesaver" in times of financial hardship. Unforeseen circumstances and/or emergencies can severely impact a person's ability or capacity to respond appropriately. A medical emergency can cause a client's week to come to a grinding halt due to unanticipated costs beyond their control. Payday loans allow customers to access a lump sum immediately to ease some of these unexpected costs. A payday loan service is a great option for those in dire need of a quick loan.

But there are risks associated with short-term loans. The greatest risk is due to the nature of this industry. A payday loan is not a good option if the applicant doesn't have the funds to pay the amount owed. The high interest rates of these types of loans almost make repayment impossible for those who don't have stable income. Accepting payments from such customers increases your risk. Merchant services that are more risky than usual tend to be avoided by traditional banks. High-risk credit card processing can help.

Merchant accounts should be managed carefully to prevent fraud and chargebacks. You can keep your merchant account in a positive light and continue to process debit and credit card charges with a payday loan merchant account specifically tailored to your business. You will find that the benefits of processing cards and electronic payments outweigh any hurdles you have to overcome to avoid those risky chargebacks. Customers from all parts of the country will be able to access your business' payday loan services. This opens up endless opportunities for businesses looking to expand and grow. Talk to one of our merchant account experts to learn more about how Zenti could help your payday loan company.

Do You Need a Payday Loan Merchant Account?

Zenti is the leading payment processor for payday loan merchant accounts in the industry. We can help merchants that process cash advances, short-term loans, and more. If you need a payday loan merchant account, Zenti is here to help.

We take pride in our services. We'll take the time to learn your business and understand your specific needs. As a payday loan merchant account provider, we've come to understand the desperate need for businesses in your industry. It's an industry that's growing due to many changes in the world today. There are more than 20,000 payday and short-term loan providers in the country that together bring in over $40 billion every year in the United States. Zenti offers several options for payday loan providers, including:

• High-risk processing
• Payment gateways
• Chargeback management tools

See what Zenti can do for your payday loan store.

Why Is It So Hard to Get Payment Processing Services for a Payday Loan Lender?

For years, payday lenders have provided a valuable service for their customers. Many people find that having the ability to get quick cash helps them out of difficult situations. The payday lending industry is now worth more than $6 billion annually. Payday loan services are in high demand in the United States.

Considering all the growth, profit, and high demand, why is it so hard to obtain electronic payment processing for payday loans? Risk is the main issue. Banks view payday loan brokers as high-risk gambles. Banks label high-risk industries as having poor merchant services, which can severely hinder business growth.

It is easy to get lost in the game of looking for a payday loan merchant. This is unfortunately the reality for many payday loan lenders. It can be frustrating, but crucial, for the success and stability of a lender.

It is crucial to find someone who is experienced, knowledgeable about your industry, and has a track record of payment processing for your payday loan company. Zenti is the preferred merchant account provider for high-risk merchant accounts. We take our work seriously and have one goal: to get you approved for a merchant account so you can process card transactions quickly and easily.

Why Your Payday Loan Business Might Be Classified as High-Risk

Payday lending and other short-term lending programs are a necessary and valuable service for consumers needing to make ends meet, but that doesn’t stop banks from classifying these businesses as high-risk for a variety of reasons, including:

• Highly regulated industry
• Banks worry about this industry's clientele, who may not have good credit or a history of good financial decisions, which often leads to a failure to pay, transaction disputes, and more
• Banks are also wary due to the numerous lawsuits against bad actors in payday lending businesses, despite the legitimate businesses in the industry

Find a Payment Processor that Understands Payday Lending

Many payday businesses have been refused merchant services because they’re considered high risk, which is why you need a payment processor that specializes in high risk merchant services. We work with payday lenders to provide services unique to your needs, including:

• Check solutions
• ACH
• PIN debit
• Recurrent billing
• High-volume payments

Did You Lose Payment Processing on Your Payday Loan Merchant Account?

When you opened your profitable payday loan business, you likely shopped around for a credit card payment processor in hopes of approval. All payday loan merchant account providers took your application—but how many actually approved your business?

When you apply with a traditional bank, such as Chase or Wells Fargo, you'll find they don't offer services to businesses of a payday loan nature. It's not uncommon for businesses like yours to quickly become frustrated over the entire application process. Hard inquiries on your credit add up, and when you're getting nothing but rejections, that just adds insult to injury.

What you need to look for is a merchant account solution that has established relationships with payday loan providers in the past and has a positive track record with banks that work with businesses in the payday loan industry. What you need is a partner that works with high-risk merchant accounts.

Rather than going to the big banks, getting denied, and potentially ruining your credit, look to the experts at Zenti for your payday loan provider merchant account. Experience the security and stability of a merchant account that successfully accepts both debit and credit cards.

Why Does High-Risk Matter? How Can Zenti Help Me?

Payday loan providers fall into the high-risk merchant category. So, the only solution at your disposal—because the big banks like Wells Fargo and Bank of America won't do it—is to partner with a company offering high-risk accounts for merchants like you.

Even aggregate processors such as Square, Stripe, or PayPal won't offer payment processing in the payday lending industry. Sure, they'll accept your application at first—but after they review your processing account, you'll receive notice that they don't accept payday loan merchant accounts and immediately close your account. They may even freeze your account, not letting you have access to funds currently available. Not only could you lose money already earned, but you'll have no way to process payments again until you partner with a high-risk payment processor.

Now, there are a variety of reasons why payday loan providers can be classified "high risk", but this doesn't mean you can't find a solution. It can be tricky to find just the right payment processor, but Zenti specializes in high-risk and payday loan merchant accounts.

Why Does High-Risk Affect the Chances You Can Get a Payday Loan Merchant Account?

The payday loan industry is considered high risk due to the potential for high chargeback amounts—and a high number of them. Your chargeback ratio—even if it's not that high—won't matter to traditional payment processors because the average chargeback ratio for a payday lender is typically high.

Chargebacks occur when a payment instrument isn't honored by its financial institution. In many cases, the amount then remains unpaid. This causes incredible losses for credit card processing companies. These processing companies experience extreme scrutiny by sponsor banks and credit brands, such as Mastercard, Visa, and American Express.

A sponsor bank will close any payday loan company's merchant account if it exceeds 1% worth of chargebacks in addition to adding fees to the payment processor's bill. The average payday loan provider has low-income clientele and large tickets, meaning chargebacks are common and typically seen in large numbers by sponsor banks.

It's the average client of a payday loan lender that lends itself to the business's high-risk label. Clients are usually people in a bad financial position who need fast cash. The loan terms offered (and accepted) are often out of reach. But the client agrees and provides their debit card information for debt repayment. The problem occurs when there's not enough money in the client's account or—worse—the client disputes the charges. Unfortunately, this is often ultimately your responsibility and your expense.

This is an all-too-common problem in the payday lending industry. Due to the chargeback percentage of most payday loan businesses, the majority of traditional banking institutions won't even offer merchant services. It's too high-risk, fraught with liability and uncertainty.

Instead of getting your hopes up for approval from one of these traditional institutions— or worse, being approved and then experiencing sudden account closure out of the blue—start your payment processing out on the right foot. Choose a payday loan payment processor that understands your business's unique needs and that can effectively and efficiently meet those needs.

Zenti offers solutions to support payday lender merchant accounts, such as:

• Check cashing
• Small personal loans
• Short-term loans
• Check drafting

…and more.

Partner with Zenti

Zenti understands the needs of payday lenders and has established relationships with banking institutions so that we can be the best and only resource you need for a payday loan merchant account. Our experience is for your benefit. Ready to enjoy the stability of payment processing how, where, and when you need it