Consumers Say No to Mobile Payments

Dec 30, 2015

Consumers are planning to spend more cash than credit this holiday season, according to a survey conducted by Bankrate Inc. Out of 1,000 consumers surveyed, 39% said they intended to use mostly cash, while 31% opted for debit cards. Only 22% said they’d use credit this year. This comes as a shock to many major merchants who relied on open-to-buy potential offered by credit. If these results hold true, it could spell trouble for merchant profits this year.

Of course, the study figures could be exaggerated if consumers were embarrassed to share a true preference for credit, as it may make them seem financially careless. The demographics of the survey are interesting. Participants between the ages of 18-29 had a strong preference for debit (48%) and the weakest preference for credit (14%). Ages 30-49, almost equally preferred cards with 28% saying they would use debit cards and 24% citing credit cards.

The projections for mobile payments was dire, however. About 70% of customers surveyed had internet access, and 84% said they were not going to use mobile wallets for shopping. Only 14% said they would use mobile wallets. 36% of respondents cited security concerns as to why they wouldn’t use mobile wallets, while 31% cited convenience. This is a shocker for some as there has been plenty of hype about mobile’s ability to change the payments game.

These results imply that there is a lack of education regarding mobile payments across the general population, which could be easily solved. But the convenience factor, may not be so simple to fix. It is just as easy for consumers to swipe their cards as it is for them to take out their phones. So mobile-payments services must find ways to entice consumers to use their technology, at least in the beginning.

Retailers must be ready to provide every type of payment service to consumers. Nowhere is this more important than in high risk businesses such as the electronic cigarette industry. EMB provides a payment gateway for e-cig merchants that accept a variety of payments like debit/credit cards, checks, e-checks, and more.

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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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