CFPB Delays & What They Mean for Payday Merchants

Dec 29, 2014

The CFPB, or Consumer Financial Protection Bureau, has delayed three major announcements and implementations for 2015. While some are happy that these new regulations will not happen as expected, the vast majority of merchants and customers are not. While its delays could harm merchants, there are things that you can do to protect your payday loan business, regardless of their lack of action.

The agency’s recently released semi-annual agenda said it anticipated it would issue proposals on overdraft protection, debt collection and payday lending sometime in the first seven months of 2015. That means those three rules likely will not be finalized until 2016 if they stay on the current track. Overdraft protection helps protect not only merchants, but everyone with a banking account. Debt collection regulations help everyone, from loan officers to consumers to even the firms that work to collect the debt. Their new regulations for payday loans are especially important, as the past few years the government has cracked down on sky-high interest rates when it comes to these loans. These talks have also been going on since 2013, so this delay further affects the industry.

You need to make sure that regardless of any changes, or lack of changes, that your company is secure. You need to make sure that you employ an experienced merchant account provider, such as, for your payday loan merchant account. While many merchant account providers claim to accept payday loan merchants, they are not experienced and educated on the industry to know what to do if something goes wrong. For instance, chargebacks are common with payday loans. Many times, a merchant account provider will drop a business if a chargeback occurs. We at know that this is something that goes along with the industry, and we can help you figure out if the charge is fraudulent, or just a regretted decision.

If you are a payday loan merchant, you need to make sure that you are employing an experienced and knowledgeable merchant account provider. You need to look no further than for your new account and chargeback suite.


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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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