A reliable payment processing provider can be the perfect addition to your pawn shop or pawn broker service. A pawn shop merchant account provider specializes in high-risk merchant accounts.
A seasoned payment provider will make it easier for your business to accept non-cash payments. Accepting credit cards and debit cards, with other payment options like e-Checks and ACH can help increase merchants’ overall revenue.
SecureGlobalPay has been providing these payment solutions for many years.
What is a Pawn Shop Merchant?
Pawn shops are in the business of lending money to individuals who can provide specific valuables as collateral for a loan. When the customer pays back the money, the pawn shop returns their merchandise.
If the customer chooses not to redeem their collateral, there is no obligation to pay, and the pawn shop owner can take ownership of the collateral, and sell the merchandise to retail customers.
As straightforward as this process sounds, the industry is still immersed in controversies and stigma. Yet, it is an industry regulated by laws, which include:
- Truth-in-lending Act
- Bank Secrecy Act
- IRS regulations
- US Patriotic Act
- Gramm-Leach-Bliley Financial Services Modernization Act
- Trading with the Enemy Act and related Executive orders
These are the same rules and regulations that govern all payment processors, acquiring banks, and financial institutions. This is why SecureGlobalPay, with its 25 years of industry experience, is able to fully understand the needs of these business types. They do so by providing many payment processing benefits to these higher-risk merchants.
We offer merchant accounts for many high-risk businesses including pawn shops and pawn brokerage services.
Why a Pawnshop Merchant Account is High-Risk
One of the main reasons is the possibility of a pawn shop handling stolen goods. This reason alone makes running such a business a risky affair. Many financial institutions simply do not want the risks associated with this particular business type.
High-risk merchant account providers like SecureGlobalPay offer pawn shop merchant account services and have been doing so for many years.
What makes a merchant account risky? Standard, low-risk payment processing companies consider pawn brokers to be risky merchants because of associated liabilities. They associate the pawn industry with high rates of fraud and chargebacks, which ultimately are the responsibility of the payment providers should there be a problem. As such, many providers are not willing to provide pawn shops with merchant services.
The industry is generally stigmatized, and only a few providers like SecureGlobalPay offer high-risk merchant accounts to these businesses.
Payment Processing for Pawnshops
An efficient payment processing solution for retail pawn shops could be just the addition you need to streamline your workflows. Many borrowers might prefer to use their credit cards or debit cards for transactions. Enabling credit card payments in your shop makes it an attractive entity to do business with.
You should search for a merchant provider that fits your business model. Whether you run an online pawn shop, a brick-and-mortar model, or a combination of both, you can rest assured that SecureGlobalPay can provide you with a high-risk merchant account to run your business smoothly.
Pawn Shop Merchant Account – Why Do I Need One?
Popular service providers like PayPal have many requirements and do not provide payment processing services to pawn shops or any industry considered high-risk. Therefore, you are left with a few entities that specialize in providing high-risk merchant accounts, and SecureGlobalPay is one of them.
Providing your customers with flexible payment options, including the option to use debit and credit cards, opens up your business for more customers. A good payment solutions provider allows you to widen your customer base through a pawn shop merchant account that allows you to accept payments from multiple channels.
Although pawn shops provide secured loans, they’re not always so clear-cut and dry. Pawn shop owners have the option to sell collateral when the borrower fails to pay. Ultimately, the aim is to have customers pay back the loan at specified interest rates. However, this is not always the case and the collateral is sold.
Accepting card payments allows customers the flexibility they need when repaying a loan while reducing the risk of the goods being sold.
Flexible and convenient payment methods like debit and credit cards mean that customers can pay from anywhere. This will help prevent customers from not paying due to a possible lack of time to visit your retail store.
These payment options make it possible for them to make payments online or even over the phone. Online payments accepted through SecureGlobalPay’s payment gateway also allow for monthly recurring payments.
Conclusion – Pawn Shop Merchant Services
Controversies may surround the pawn shop industry, but they are still legitimate businesses that deserve merchant services like other businesses. SecureGlobalPay provides payment solutions to high-risk businesses, including pawn shops.
Contact their sales team to get more details on how you can get approved and start accepting payments today!