Alternative Payments on the Rise

Jun 05, 2014

The online payment industry is beginning to shift. Credit cards remain the dominant online payment form in the United States but that will soon change. German firm yStats predicts that by 2017 alternative payment methods will be used for more than half of all B2C online transactions. The firm predicts that digital wallets and mobile payments will grow the fastest in not only the United States but also on an international scale. Additionally, alternative payments are becoming the preferred payment form online in various industries.

The data from yStats reflects that in regard to online transactions credit cards were used 75% of the time after which the second highest method of payment were digital wallets. The firms’ report also concludes that digital currencies, such as bitcoin, will continue to increase in the next years sending alternative payment numbers even higher in the United States.

In regard to Europe the market share also stands to increase. In fact the company predicts the alternative payments market share, including forms such as mobile and e-wallets, to grow to as much as 20% of the total payments market by 2020. In countries such as the Netherlands and Germany however, alternative payments already account for a large portion of transactions.

In other markets, such as Latin America, alternative payment methods have exploded and already account for over half of the total online transactions.

The Asia-Pacific market shows that it has a stronger digital wallet presence than other places in the world with heavy card use online.

The high risk merchant industry stands to benefit from this increase in online sales and use of alternative payment methods. Because high risk merchant accounts are more susceptible to fraud new alternative payment methods could prove to secure transactions more. Also, high risk merchant accounts usually have difficulty accepting online payments because processors are unwilling to accept certain industry risks. By incorporating new alternative payment methods high risk merchant accounts can more easily facilitate payments online.


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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 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.