Credit Access Bills Would Help Everyone… So Why The Wait?

Jun 17, 2015

Many in the debt collections business know that consumers are typically confused on the difference between their credit reports and credit score. An overwhelming high percentage of those surveyed by IPSOS thought that their credit reports and credit score were the same thing, or meant the same thing. We know this is false, and a new bill would help educate the public on their likes and differences, which could help consumers make smarter choices when it comes to borrowing and dealing with credit.

Consumer education has long been lacking in the credit category. While little is learned in high school and college (unless you are an economics or accounting major) about credit, even less is remembered once the classes are over. Many look only at their credit scores in gauging how good or bad they are doing, while disregarding their credit reports. One small error on a credit report can wreak havoc on a credit score, bringing it down, and potentially costing you a home, car, or job. It is always wise for debt collections merchants to explain the differences to their customers, as well as keeping the differences posted in you have a business social media presence. Most businesses, small and large, have a social media presence, and usually when you ask someone to “pass this post around”, they will.

It has been 20 years since the Credit Repair Organizations Act was passed, and a new system has been in need for years. This system was meant to deter credit thieves, by distorting one’s credit report. However, the system has been taken too far, and few actually look at the report before stealing personal information. It is important to keep consumers safe, and this system was not the answer. Education is the key, and by offering cheap and/or free education – simple to understand education, at that – more good can come to the industry.

While this is great, debt collection agencies need to make sure that their debt collections merchant accounts are protected by a good debt collections merchant account provider, like EMB. This is often your best bet when you need to make sure of any changes in your industry, which not only can help you, but also your customers.

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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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