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Payday Lending Payment Processing

High Risk Done Right®

Operating in cash only? Paying too much to accept payments? Can’t get approved?

Payday lending and other short-term lending programs are at times a necessary and valuable service for consumers needing to make ends meet. However, many regulators and acquiring banks make it difficult for these businesses to acquire electronic processing.

Due to the actions of a few malicious establishments, the payday lending industry has gained a negative reputation with financial institutions. This shouldn’t affect the ability of legitimate payday businesses to deliver lending options.

Payday lending businesses can count on NMA.

  • Merit-based business analysis
  • Industry type or specific business models do not define approvals

Experience a superior merchant account.

Change is Good. And it’s Easy.

Switching merchant service providers shouldn’t negatively impact a business’ bottom line – it should benefit it. That’s why NMA makes the change seamless, frictionless, and profitable.

NMA has enhanced solutions catered to high-risk industries:

Chip to cash iconDedicated account reps
Payment solution iconIn-depth knowledge of both payments and payday lending
Increasing arrow on chart - iconIn-house underwriting and risk mitigation
Increasing arrow on chart - iconCustomized pricing and optimization – no price gouging

Payday lenders can feel confident switching to NMA. It’s not just changing to a new merchant account, it’s growing good business.

Accepted Business Types

Payday loans, also known as salary loans, payday advances, and cash advances, are considered a high-risk industry by the card brands and acquiring banks, but are still permitted merchant accounts with the right due diligence. NMA accepts the following business types:

  • Short term lenders
  • Brick and mortar payday lenders
  • Brick and mortar consumer lending
  • Cash advance merchants
  • Other alternative financial services

Looking for an e-commerce merchant account? NMA offers merchant accounts to an extensive list of e-commerce, card-not-present businesses – typically classified as high-risk. Learn more about our high-risk merchant accounts, or reach out directly to speak with one of NMA’s high-risk experts.
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Why It’s High-Risk

It’s difficult for payday lenders to acquire merchant processing due to many factors.

The payday lending industry has an extensive regulatory history, involving consumer financial protection laws and restrictions on facets of short term loans, such as APR caps and outright prevention of such loans in various states.

These substantial regulations cause stakeholders in the payments industry to tread lightly when considering the liability of approving payday lending merchant accounts.

Banks are wary of the clientele, who may have bad credit and a history of making damaging financial decisions. This can lead to non-payment on loans, transaction disputes and more.

Financial institutions are also cautious in light of the numerous Consumer Financial Protection Bureau (CFPB) lawsuits against bad players in the payday industry. The intensity of these alleged abusive business practices has caused acquirers to place payday lenders on the prohibited list for merchant processing.

The high-risk label doesn’t have to be a scarlet letter for payday lenders. It’s just a signal to the real experts in payment processing, who have expertise in what really matters – approving and maintaining high risk merchant accounts.


Regulatory and compliance concerns prevent some acquirers from approving payday lenders for merchant accounts.


NMA never declines a high-risk merchant due to industry type.


Many merchant processing solutions catered to high-risk businesses aren’t extensive enough.


NMA offers a wide range of services catered to the needs of a payday lending business, including check services, ACH, PIN debit, merchant cash advances, recurring billing and high volume payment solutions.

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What to Expect

NMA knows the consumer lending space – better yet, we know high-risk merchant services. Understanding each payday lending business individually ensures that a custom payment processing solution is provided. We assess risk and recommend solutions based on actual data and business history.

What to expect when partnering with NMA:

  • A consultative approach to understanding merchant account needs
  • A simple, easy application process
  • Efficient and quick MID approvals

The NMA underwriting team ensures that all documentation is acquired, solutions that best benefit the payday lender will be implemented, and the complete merchant account package is ready for approval and setup.

From the second the merchant account goes live, the experts at NMA actively monitor the account to mitigate risk and sustain the health of the business.

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CFPB To Reconsider Payday Lending Rules

The CFPB announced that it will be reconsidering controversial new rules that would have dramatically altered the payday lending industry.

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CFPB Supports Reconsideration Of Payday Rule

Payday and short-term lending is an approximately $6 billion-a-year industry, one that both critics and supporters of payday lending agree will take a major hit if the [new payday lending] rules went through.

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Payday lending in California shrunk by almost 7% last year

Californians relied less heavily on payday loans in 2017, according to new data that could reflect the state’s strong economy as well as recent changes in the structure of the small-dollar loan industry.

Read More