Posted by NationalACH on Aug 25, 2016
Debt Collectors Embrace E-Payments

Debt collectors are faced with tremendous challenges. According to PWC, the industry is transforming as the regulators add pressure and oversight to consumer collections.

Collections is still a vital part of the lending process.  For example, one in three Americans have had an unpaid bill or loan reported to a debt collector in the past.

This means that the services of debt collectors are still in demand, despite the regulatory oversight. The industry must adapt to the new rules and work with the authorities,.  While continuing collection efforts at the same time.

One way to comply with the rules and ease the process is to offer an easier way for debtors to pay back their loans. Many debt collectors are embracing e payment systems to make their operations more efficient and increase the rate of collections.

Use Technology To Your Advantage

A key takeaway from the PWC report is the use of technology to boost your returns. Many of the routine processes can be automated by deploying an e payment system.  This frees your staff to focus on collecting more by building relationships with the debtors.  

Staying in touch with debtors and winning their trust is essential. Once the debtor has agreed to pay back the loan, the repayment process can be automated so that regular payments are taken from their account with minimal effort. A report by Tata Consultancy Services finds that the future of debt collection lies in automation.

Recurring payment plans are easily set up through your e payment system. Payments automatically are deducted from debtors' bank accounts on a regular basis.  As a result, cash flow increases and the need to recontact debtors for payments decreases.  

The most common e payment system in the US is the Automated Clearing House, one of the most secure e payment systems in the world. ACH payment processing includes benefits like fast notifications if something goes wrong, added security, lower costs and a more efficient e payment system. You can also offer multiple payment channels via a virtual terminal, which means borrowers can pay through mail, phone or even fax.

Power of Automation 

Not only will a e payment system streamline the process of collecting debts, it will also help you learn from the data collected on payers.  Information is power.  

Extensive transactional & management reports  can help you figure out patterns and behavioral traits that can be used to identify where your strategy is working and where it isn't. Specialized software can help you locate the debtors, manage debt and keep a track of missed payments.

E payment system data can easily be imported and exported to your internal systems. Increasing productivity, decreasing expenses, and streamlining administrative functions.


Debt collection is a high risk industry and the recent drive to tighter regulations is adding pressure to this sector. But as defaults and borrowing grow, demand for your services is likely to expand.

You can streamline the process of collecting debts by applying technology. E payment systems help automate the collections process.  Freeing you and your staff to concentrate on collecting more money from debtors.

Have you considered automating payments yet?

Contact us today to set up your debt collection merchant account.