Americans Lag When it Comes to Contactless Payments

Jul 23, 2015

The American processing system is lagging when it comes to contactless payment usage. This is compared to European users, and while the US consumers are slowing getting into the idea of contactless payments, they are nowhere near the rate as Europeans. Visa Europe figured this out, and they also figured out that about 25% of the contactless payment devices in the USA are vending machines. In total, there are around 700,000 contactless payment accepting locations in the USA, verses 2.6 million across Europe. One could argue that Europe is larger, or has their safer chip and PIN card to rely on. However, technological advances should not stop just because one area is larger. The card issue is a fair argument, but thanks to technological advances, changes are soon to come to the USA.

In Europe, where EMV chip and PIN cards are firmly established, many issuers first offered contact chip cards in which the card is inserted into an EMV terminal. Nevertheless, EMV cards with contactless functionality also included are gaining share because their fast transaction speeds make them ideal for use at grocery stores, quick-service restaurants, convenience stores, and mass transit. This is soon to happen in the USA, as these cards are now on a trial basis with many card companies, and they are set to become the standard in 2016, unless the government pushes the date back once again.

While the USA is lagging, there are things that merchants can do to help increase their contactless payment solution dreams. While the payment solutions are great for people who want a quick checkout, they can be less secure than other methods. You need to make sure that you have a reliable high risk credit card processing account. While it may seem like one is easy to find (especially using Google Search), you need to be careful. Not all high risk credit card processors are created equally, and they are not all suited for the same types of businesses. You need to be upfront with your desires of offering contactless payment options. This is a big deal, and can often be a deal breaker when it comes to obtaining a processing account.

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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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