5 Key Things Retailers Must Know About Credit Card Processing

Sep 24, 2015

The push to convert to EMV chip card implementation is in full swing. Despite a full EMV chip card implementation release date of October 2015, most experts believe full conversion may not happen in the U.S. until 2018. According to Nick Holland, a senior analyst for Javelin Strategy & Research, too many banks, card issuers, and retailers are behind on EMV education to be ready this year. This problem is especially important to retailers, who bear the brunt of the penalties if their POS systems are not EMV compliant. Here are a few things that retailers must know to make their EMV conversion successful.

1. Know All the Players and Their Roles

There are many organizations involved that make the EMV process work. Such organizations include: credit card associations, banks, merchant account providers, payment gateways, and processors and acquirers.

2. Understand Base Fees and Markups

To create a merchant account you must understand base fees and markups. Base fees are wholesale charges for sales via credit cards. These fees are determined by issuing banks and associations.  Markups are negotiable and depend on the credit card processor.

3. Research Fees

Retailers may work hard to meet EMV deadlines, but can be penalized to death with fees. Before partnering with anyone, know all the fees associated. Some common fees can include: Interchange Reimbursement and Assessment fees, Terminal fees, PCI fees, Network fees, Monthly fees, Annual fees, Early Termination fees, and more.

4. Find Ways to Reduce Processing Fees

Because there can be so many crippling fees, you’ll need to find legal ways to decrease fees. Find credible and reasonable credit card companies to create a merchant account well. Understand that higher risk accounts will be charged more than lower risk ones.

5. Choose Credible Payment Processors

Reliability is extremely important when searching for a provider. Online merchant services like eMerchantBroker.com have 24/7 customer support services in place with the latest in processing technologies. Make sure to research all options before signing a contract.

EMV chip cards are not the future – they are right now, and you could be penalized heavily if your terminals are not prepared. All types of merchant accounts, especially high risk ones like credit repair merchant accounts, online startup accounts, and online dating accounts, should be ready. Ensure that your business is ready to process EMV chip cards by opening a merchant account with eMerchantBroker.com.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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