Congress Reinforces Support for Credit and Collections Industry

May 19, 2014


At the ACA Legislative Conference Capitol Hill reception on May 6, 2014, members of Congress expressed their support for the credit and collections industry. The first annual conference brought together members of the credit and collections industry to discuss policy issues, and introduce industry members from across the nation to legislators. Among the keynote speakers at the conference were: Rep. Blaine Luetkemeyer (R-Mo.), Rep. Mick Mulvaney (R-S.C.), and Rep. Lynn Westmoreland (R-Ga.).

Luetkemeyer is a former bank examiner and vice chairman of the House Small Business Committee.  He is also a member of the House Financial Services Committee. Mulvaney is a member of the House Financial Services Committee and is sympathetic to the challenges of mediating relationships between small businesses and the credit and collections industry. Westmoreland is also a member of the House Financial Services Committee and is a small business owner.

Among the policy issues discussed at the ACA Legislative Conference, was the CFPB (Consumer Financial Protection Bureau) proposed rule on Gramm-Leach-Bliley. The rule would amend the privacy notice under the Gramm-Leach-Bliley Act (GLBA). The change would allow for some collectors to post privacy notices on their websites, as opposed to sending out individual notices through the mail.

Currently, the GLBA requires institutions to send initial and annual notices regarding their privacy practices. The notices relay how financial institutions share consumers’ non-public personal information. Consumers must be notified if institutions are going to share this information with third parties so that consumers can deny this information exchange.

The proposed rule will mandate that credit and collection institutions continually post the annual privacy notice on a separate page on their website, that does not require a login to access the policy. If the institution qualifies for this type of notice, they are required to mention the privacy webpage in mail correspondence.


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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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