PPI Merchant Account & Services
I’ve been in the payments industry for near enough 9 years now and we’ve established some great banking relations. We have helped many, many types of businesses that comprise of low and high risk businesses with varied card turnovers, ranging from as low as £20k per annum and anything up to £400m per annum.
One particular business type that we’ve become specialists with is PPI claims management businesses. I know we’ve all been bombarded with lots of unsolicited sales calls for the last 6-7 years if not longer and its going to continue until August 2019 unfortunately for many of you, including me. But I’ve had the pleasure of dealing with some great people that run these businesses as they’ve tapped into an opportunity that has worked out to be extremely profitable for them at the expense of the high st banks and lenders.
For typical banks within the UK, it’s obviously a conflict of interest to supply merchant accounts for PPI claims businesses that are suing them. PPI claims businesses are typically classed as high risk businesses and because of this labelling, they are penalised with high processing rates. In general, high risk businesses are labelled this way because of their increased risk of fraud, nature of products they are selling and increased risk of chargebacks to name a few. From my experience of dealing with PPI claims management businesses is that they are certainly not involved in and kind of fraud, the products/services they are selling are approved by the Ministry of Justice and the chargeback rates are close to zero. It then makes you think, why are they therefore on such ridiculous card processing rates, which can be as high as 4% per transaction.
Due to the high risk labelling, PPI claims management businesses are forced to acquire a merchant account outside of the UK and this can become quite messy as the communication can be very slow, especially when dealing with US merchant banks, with the obvious time differences and you’re usually not dealing with the high risk merchant bank directly, but going through many agents who are taking a healthy cut of the processing fee and there is an overall lack of transparency with the setup.
We Tranxact Ltd have teamed up with some great acquirers to offer a UK based PPI merchant account, which not only helps existing PPI claims management businesses de-risk from offshore, not so stable merchant account providers but offer much more attractive card processing rates.
MOTO, Ecommerce and Pay By Link Options
We have helped PPI claims businesses setup MOTO (Virtual Terminal for telephone orders) and ecommerce merchant accounts with the added option of a pay by link option, which has been received very well as its increased their winnings collections conversion rate quite substantially as they are given the option to email a payment link to the customer who is then prompted to enter their card details form the comfort of their homes, with no pressure.
For many high risk businesses, one of the significant changes is the delay in accessing funds, and as a PPI claims management business is itself a high risk merchant, it is no different. However, there are numerous providers who have managed to reduce this and offer PPI claims management businesses that have delays no longer than a standard merchant account, typically 2-3 working days, which can be very beneficial for cash flow.
PPI claims management businesses have just under 2 years to maximise this opportunity, so its crucial to make the very most of it by securing the very best rates now to increase your overall profits.
We managed to save a PPI claims management business close to 80% on their existing PPI merchant account charges. Of course we cannot guarantee that level of saving for every merchant that comes our way but having said that, for a business with a good history and all the required documentation, setting up a PPI merchant account is very straightforward, if a slightly longer process than a normal merchant account, but without doubt, you will be offered a much better deal along with great service and all this can be accomplished as quick as one week.
Why pay more than you need to?