AMEX Payment Processing For High-Risk Business Is Possible

Sep 01, 2020

Many merchants are unsure of whether American Express is the right card network to explore for catering U.S. and Canadian buyers. Some prefer other options because of pricing. Others don’t know if it’s a good option for a high-risk business. To find out more about AMEX for high risk payment processing and discover an exceptionally high risk processor, go through the article below.

AMEX Payment Processing: High-Risk Business

American Express was founded in 1850. Since then, the payments giant has undergone significant changes. The American Express Card is the top credit card in 23 countries, such as the U.S. and U.K. However, AMEX doesn’t use an open network as it’s the case with MasterCard and Visa.

The AmEx limit on high risk credit card transactions puts higher control on the amount that merchants must pay to accept cards. So, merchants have 2 options to get AMEX payment processing for business. First, you can go through a merchant service or payment provider with the OptBlue program. Second, you can go directly through the AMEX card network.

In general, high-risk businesses are required to pay higher rates and take additional terms when applying for credit card processing services. The good news is that there are respectable high risk processors like eMerchantBroker.com that boast the lowest possible rates for a high-risk business.

EMB, a BBB-accredited company with an A+ rating, is voted the #1 high risk merchant processor in the U.S. eMerchantBroker.com provides high risk merchants with the most advanced fraud prevention and chargeback mitigation solutions in the industry.

AMEX for High Risk Merchants

As a rule, AMEX and other card networks assess the likelihood of chargebacks and fraud when approving a merchant for payment processing services. If you’re a high risk merchant, be ready for a larger amount of transaction disputes.

AmEx places high risk merchants in one of its chargeback programs or terminates the processing agreement in the worst-case scenario. The payments giant considers a merchant high risk if the latter poses the greatest threat to the company. Be aware that AmEx has distinct chargeback reason codes that differ from those associated with other network codes.

Also, American Express keeps all-new network merchants under monitoring. Besides, the company may also watch over the established merchants’ behaviors and steps taken in case any issue exists.

As you see, AMEX is an option to consider for high risk merchant processing. Only, you should shop around to find the most suitable payment processing services for your own business wants and needs.

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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.

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