Bad Credit Is No Excuse! You Need a Merchant Account

Nov 18, 2015

If you have a business, you need a merchant account. It’s that simple. What isn’t so simple is finding a merchant account if you are considered a “high risk” merchant. This label is slapped on various industries that have a higher rate of fraudulent charges and business closures. While some industries are expected to be on this list (i.e., adult dating websites and gambling websites), sometimes the business itself isn’t the “industry”, but rather the financial status of the merchant. A growing “industry” is the bad credit merchant industry. While everyone deserves a chance to operate their own business, many times those with bad credit have the toughest time.

These issues don’t involve actually opening a business, but rather obtaining a merchant account. A merchant account allows a merchant to process credit and debit card payments, and it is imperative that every business has this option. However, if you have bad credit, no credit, a bankruptcy, or a tax lien, you can have just as much trouble finding a merchant account as someone with a adult dating merchant account. Even if you have a good business standing, your personal credit can tank your chances of obtaining a good merchant account. This leaves some opting to use PayPal to process payments, or even go as far as morphing into a “Cash Only” business. PayPal is a terrible option, because they will drop a company for taking in too many transactions in a short time period, and they can freeze an account at any time. This leaves you without funds, and leaves you without the ability to give refunds. A “Cash Only” business is also risky, because the advertising involved leaves vulnerable to thieves. It also leaves you without a large chunk of your customer base, because the majority of consumers pay with plastic payment cards.

Those with bad credit need to obtain a bad credit merchant account, like the one offered by EMB. This is one of the most important things you can obtain for your business, whether you are in a small, single employee business or in a large, multi-location business. Your business runs on its customers, and you need a way to accept their payments safely and securely.

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

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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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