A High Risk Merchant Has Every Right to Process Credit Card Sales

Jul 31, 2014

Every day more and more online and brick-and-mortar merchants are being advised that they are falling into a high-risk merchant category. Some reasons may be ‘legitimate’ due to excessive chargebacks and a lower credit rating. But some potential successful operations are given this news just because of the service or product they offer. With the rise of international credit card fraud and identity thefts, conservative credit card processors try to mitigate their risks by turning away high-risk, albeit successful, entrepreneurs and businesses.

Some of the credit card processors will write a few high-risk merchant accounts by charging outlandish fees. Sometimes the fees can be two or three times more than a non-high-risk merchant. It appears that the business is being penalized for selling adult videos or toys, providing a credit repair service or being involved in the debt collection industry. It is as if these credit card processors are saying, ‘we will do business with you but only on our terms.’ No one likes a heavy-handed approach.

A high-risk merchant account has the right to lower rates.  A high-risk merchant account has the right to an acceptance within 24-48 hours, not 7-10 business days. A high-risk merchant account has the right to have the charge receipts deposited into the business checking account within 24 hours. A high-risk merchant account has the right to accept checks as a method of payment.

It is a proactive and productive measure when a high-risk merchant applies with a credit card processor that specializes only in accounts within its sector. A processor who is not educated on the intricacies of these accounts will have more questions than answers. The business owner can be treated like a convicted criminal rather than a valued customer. It is very possible that the merchant will be subject to high setup fees with a traditional processor that is only interested in covering the risks associated with the account. It is also possible to have application fees that are non-refundable.

The credit card processor that is the expert on high-risk merchant accounts will also offer additional beneficial services such as chargeback protection and chargeback prevention services. The small amount charged for this insurance can save the merchant hundreds if not thousands of dollars annually. The merchant is protected against credit card fraud which benefits everyone.

Contact us to set up your High-Risk Merchant Account today!


Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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 on 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.