Can the Federal Banking System Ever Become Effective?

Dec 24, 2014

Senator Elizabeth Warren told New York Federal Reserve President William Dudley to “man up.” Warren was expressing her frustration at a perceived lack of competent bank regulation. While many believe that the problem with Federal oversight is negligence or impotence, some banking officials think that the Federal government’s dual role as both enforcer and regulator is to blame posing the question – can an agency effectively act as regulator and enforcer, and effectively manage the banking market?


Bank regulation involves a great degree of catching problems before they start, behind the scenes maneuvering, and understanding of the industry to effectively prevent catastrophes or injustices from occurring. Unfortunately, the people best suited for this task are those who have a background quite similar to those they must oversee. This places the regulatory role in jeopardy of corruption if regulators are not carefully selected. But in order to ensure no cross-contamination has occurred, sometimes regulators are chosen that don’t have the best credentials. This makes room for error.


As enforcer, the federal government has an even more complex task as investigator, trying to figure out where others went wrong. However, enforcers don’t necessarily need a strong banking background, they can bone up on procedure after the initial investigation. But enforcers must possess integrity, strength, persistence, and the desire to find the truth.

When enforcers and regulators are part of the same organization, conflict can create hostility, confusion, and of course ineffectiveness in the overall goal, to make sure that banks are identifying and controlling their risks. Will the federal government ever get it right? The jury is still out.

As long as this conflict exists within the banking system, collection agency merchant accounts will be necessary and under constant review. Your collection agency needs a knowledgeable and experienced payment processor to ensure compliance and prevent fraud. Contact to learn more about our safe and competent collection agency accounts.

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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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