high risk merchant account? choices

[n21s]

we have started developing a payday loans website but come across a major problem in that traditional and common internet merchant accounts will not accept us as the nature of the business is in the 'high risk' category therefore goes againt there terms of use.

we need a virtual terminal or mechant account provider so that customers can input debit card details for repayment of the loan on payday.

Surely it must be possible as the big payday loan websites use debit cards for repayments?

the only option i have so far is doing it via direct debit collections (using online mandate and 3rd party direct debit processor)

any help much appreciated especially from web designers who have dealt with high risk before.

thanks

niv

[PR Wales]

I'm pretty sure if you're dealing in a high risk venture you are going to need some sort of financial institution like a bank behind you.

One of the more popular merchant accounts online is run under the banner "Streamline", which is an RBS brand.

Whilst its pretty straightforward to get a streamline merchant vendor account, including a Point of Sale (PoS) terminal, as a result of the economy they are looking harder and closer at the vendors they take on, which makes it a bit more difficult.

They have a "new business" speciality service which is called "Worldpay", and this may be worth a look, but again the risk nature is liable to put them off, and also the fact you're not actually selling a commodity may go against their business ToS.

I've heard of some people who obtain streamline accounts on the back of "business 1", and then use the facilities to process payments for "business 2 and 3" also, but there are some ethical questions to be asked here, and if streamline were to find out, you could see your account frozen with no access to the funds held within.

Taking online payments isn't like it used to be when paypal first set up shop. Its a lot trickier these days.

But if all of your business is UK based it may be worth getting in touch with Nochex or Worldpay, and putting your cards out on the table. At least this way even if they say no, you will have all the facts, and will know exactly what barriers you are liable to come against.

Good luck in your enterprise :)

Ian

[BoilerBoy]

Might not be the best time to be saying the words "high risk" to anyone in the financial sector ;-)

[emerchant]

Have you checked who your competitors use?

I believe the link below is for the guy who pulled out of the apprentice's site, nothing to do with me I am only replying because it was fresh in my mind:

http://www.mrlender.com/

I bet you can work it out from there?

[D_U_K_E]

Hello,
how did it all go?
n21s Did you solve the problem?