Bail Bonds Merchant Accounts
Though it is a perfectly legitimate business, sometimes bail bonds are given a poor reputation somewhat unfairly. Because of this, bail bonds merchant accounts are put into the high risk category, and as such may have a few strictures put on them. One of the main factors that separate this business from other merchant businesses is its uniqueness. Though the business can be quite lucrative, bail bonds are not the most popular business to become involved in.
The uncommon nature of bail bonds stems from the fact that your business will routinely be dealing with the justice system, criminal suspects (check ’em out via our friends at http://recordsferret.com!), those on probation, bounty hunters, and lawyers. However, the bail bonds service is an essential one, and the desire to be a part of the criminal justice system is often the motivation for getting involved in such a business. However, the necessity of dealing with such members of society makes bail bonds a high-risk endeavor. Because of the high risk categorization of bail bonds businesses, you may have to go with a third party merchant account provider when you set up to receive credit card and debit card payments. In fact, many banks in the United States have stopped offering bail bond accounts altogether. For this reason, an offshore merchant account may be the way to go if you want to start a bail bonds business. This helps to ensure the security of the funds you receive from your customers? credit cards.
Many domestic third party providers also have an efficient system of taking payment, as well as an effective risk management system that allows them to take on almost any client. With a bail bonds business, this is almost certainly the best way to go.
In general, bail bondsmen receive a 10 per cent commission on any bond posted to them.
One huge plus of being involved in the bail bonds business is the fact that chargebacks are quite rare. This is because the service you will be offering is essential, and the people paying bonds usually have no illusions about what they are paying for. As a bail bondsman, you act as security for defendants involved in criminal cases. The defendant?s provisional freedom from incarceration rests on the money or property that you obtain from them and retain for them.
The risky part of the business comes from the fact that you must engage in a contract with a criminal defendant. However, once you have received the money or property from them the risky part of your business is ended. Even if the defendant fails to show up for their court date, you can keep your percentage of what they have pledged and pass the rest off to the criminal justice system. At this point, a bounty hunter is likely to seek the defendant out.
To keep your bail bonds business valid, it is a good idea to keep a strong relationship with your bank, even if they’re not your merchant services provider.