Big Banks Strike Back Against Mobile Payments

Sep 12, 2016

Mobile payments are seemingly taking over the processing world, and banks are fighting back. Apparently not happy with these developments, banks are cutting ties with merchants who wish to accept these transactions. While it may seem okay that banks do this, stating that their safety is at risk due to the unknowns with these mobile payments, merchants are seeing red. What do you do when your longtime bank or merchant account provider cuts ties with you? You look for another processor, of course.

Payment processors are everywhere, but not all are cooperative when it comes to dealing with a merchant who wishes to have mobile payment access. While some look at this as a novelty that may go away, others see it as a risk. Mobile payments are somewhat untested, and while security features may help keep some secure, they can also raise issues. Remember the first week of chaos surrounding Apple Pay? Some consumers suffered double-charges, and Apple Pay nor the merchant could refund, thanks to the encryption of the processing. So, while this may help keep you safe it can also cause issues if something causes a double-charge.

However, issues or not this is a hot thing for merchants. Those wanting to take mobile payments should look for a cooperative mobile payment processing source. Many “high risk” merchant account providers accept these payments, but not all do, so be sure to ask before signing on the dotted line. The same goes for mainstream merchant account providers. The unknowns with mobile payments can have you in a jam quickly, but the right merchant account provider can help you overcome it.

Mobile payments are great for those who are looking for an easier way to go to their customers, as well as for those who have a small retail space. Attaching this little device to your phone eliminates any bulk of a desktop terminals – and it makes the checkout process much more personal. Be sure that you have though this through, as the decision to accept mobile payments can improve your business – but it may leave you looking for a new merchant 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 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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