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Payment Processor Offering No-Cost-To-Biller Solution

Compliance is king these days in the ARM industry. That includes how collection agencies and debt buyers process payments, as well.

In many ways, payment processing has become commoditized with companies fighting for business with collection agencies by competing on price instead of competing on value and service.

A new payment processing company that just came to market is seeking to position itself by aiming to help collection agencies and debt buyers tighten their compliance while also reducing their costs.

The company, LucentPay, has made a big splash by offering a No-Cost-To-Biller solution. Backed by a legal opinion letter by Rick Perr, a partner at the law firm of Fineman Krekstein and Harris, the solution automatically directs the convenience fee to the payment processor instead of routing it through the collection agency. Bypassing the agency makes it easier for ARM companies to more easily comply with the Fair Debt Collection Practices Act, said Rob Kennedy, one of the company’s co-founders.

“Whether an agency is taking convenience fees or not, we’re offering them a product that is both compliant and offers cost-savings,” Kennedy said. “from a compliance aspect, we’re putting our money where our mouth is by providing a legal opinion.  Our compliance due diligence is a value-add agencies deserve.”

LucentPay also offers clients access to a free web portal that can be set up to receive one-time or recurring payment from individuals. Kennedy said the company has made a significant investment in its technology and developing relationships with multiple banking partners.

“In today’s environment, having depth in the roster is important,” he said.  “We have several banks for card processing and several banks for ACH, more than any processor in collections.

Kennedy also said that the company is able to underwrite debt buyers that need a payment processor. Many debt buyers have had a difficult time finding a payment processing company that will take them on as a client.

LucentPay is attempting to separate itself from other payment processors by focusing on its emphasis on compliance and how clients can reduce their costs and save more money.

“Agencies not charging [convenience] fees can come on board and either remove all of their processing costs or drastically reduce their processing costs,” Kennedy said. “They can now use our No-Cost-To-Biller-product and save 80%, 90%, or even 100% of their payment processing costs.”


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