Changes Coming For Swipe Fees? Maybe.

Oct 13, 2016

We in the ‘States are applauding the Canadian effort to rein in swipe fees for plastic payment cards. We all know these issues: 25 cents for this card, 10 cents for that card, 30 cents for this other card – plus other “hidden fees” per charge. And, if you are a high risk merchant you probably pay more. Canadian merchants and their merchant account providers are stepping up to help everyone save a little money with the reduction of these fees.

Those with a Canadian merchant account may be behind the latest proposal from a Canadian lawmaker to limit the “hidden fees” to 0.03% of the purchase. This is great, as it can help the customer keep funds in their pocket and the merchant keep more in theirs. When these fees rise, merchants typically raise prices to compensate – which can end up costing them customers. And those who do stick around end up paying more. Everyone wants to save money, and this is the perfect way to make everyone happy.

If successful in Canada, America could jump on the bandwagon – but it may be more difficult. There are so many twisted, tangle webs between the government and the “big banks” that this may never work, but it is worth trying for, since American merchants pay the highest “hidden fees” in the civilized world. American merchants pay up to 4% in plastic payment card swiping fees – which is a 10,000% profit margin for the banks, since it only costs a few cents to actually process the payment. The merchants are losing money, the customers are losing money, and the big banks are reaping the benefits.

This isn’t right, but it Canada and other “friendly” nations can show that it works, perhaps it could someday become a reality in the ‘states. But, American merchants, don’t get your hopes up so soon. Canadian merchant however, can rejoice in the effort that their lawmakers are putting into their work, especially this project, and hopefully it does succeed. Everyone wins – the customers, the merchants, and the merchant account providers, when customers shop more at lower prices.

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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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