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Chuck Miller

Chuck Miller is the president of CCM Enterprises. CCM Enterprises is one of the fastest growing and largest collection and credit card services in the state of Kansas. Though the company is only four years old, they provide their services in 30 states. They specialize in the collection of general debt and returned checks for small to medium size companies and also have one of the most competitive and unique credit card services on the market.

What is a credit card service and when do I need to start using one?

A credit card service is an intermediary between the client who has the credit card need and the banking institution that underwrites the applications and actually buys the rates a service can provide. They are your first point of contact if you have service issues, need supplies or simply need a question answered.

I personally believe that a company should offer credit cards as a convenience to their customers as soon as they open their doors. Although there is a cost associated with offering credit cards, there are also benefits. Statistics show that when a purchase is made with a credit card, that the average purchase price is approximately 22 percent higher than when paying with a check or cash.

How will using a credit and collection company help my business financials?

A credit card service, as well as a collection service can become a valuable asset if they are selected and used correctly.

Let’s talk about the credit card service first. If you align yourself with a service that is willing to get you the best possible rate for your business, offer you excellent service and is available to you based upon your need, then credit cards become extremely valuable to you. It is very obvious that more and more people are making their purchases by credit card. The business owner needs to take advantage of this type of purchase and at the same time choose a reliable and trustworthy provider.

What should I look for when choosing a credit card service?

There are two types of providers, though they are not publicly discussed often. They are referred to as full disclosure and non disclosure. Make sure you are dealing with a company that is a full disclosure company. A full disclosure company will openly provide all rates that pertain to your account.

Will there be hidden charges?

There will be no hidden charges. Make sure the company is rating your account off of interchange whenever possible. Interchange in the credit card industry is the same as wholesale in the business industry. To get the best possible rate for your company, it has to be rated off interchange. Further, ask the provider if they mark up the cost when Visa and MasterCard have an increase. If they do, search further for a provider.  Finally, get references from the company and visit with the references on the quality of service they have received. The quality of service and support you receive is as important as the rate you are charged.

What should I consider when choosing a collection service?

We feel there are several key points to be considered before you select a service: 

• First, and probably the most important is does the provider want to become your partner? Are they interested in representing you in the best possible manner or are they only interested in collecting a fee? The better the company knows your corporate product, services and culture, the better they will be able to represent your needs.
• Second, you need to find out what the agency’s capabilities are. Are they able to service your specific needs? Not all services are the same. Each has their strengths and limitations. Make sure their strengths match well with your needs.
• Third, secure references. Find out how well the provider has been able to collect for the references. Being able to collect your money is why a provider is selected. Find out how the service performs against the competition and also how they will communicate with you. We feel that each client should have one agent to deal with and should be able to contact that agent at any time. You should be able to get any questions answered and/ or find out the status of your account.
• Fourth, look at your internal collection policies and procedures. The key point to remember here is that when you place an account will have a direct impact on the success of collecting on that account.
• Fifth, ask how many FDCPA violations the provider has had. The answer to this question directly relates to how the provider deals with the debtor and their ability to collect.
• Finally, make sure the provider has a timely and efficient reporting system. You should be able to get immediate answers on any account that has been turned and should receive a monthly status on all your accounts.

In general, what can I expect to pay for credit card and collection services?

There is not a real easy answer to this question, because rates are based upon the type of industry, type of service, volume, ticket price, etc. However, for conversation purposes the average business owner can expect to pay 2-3 percent of the ticket transaction. As far as the cost on collection services, if it is a check collection the service is free. If the collection is for non payment of a debt the client can expect to pay 30 percent to 35 percent.