CREDIT CARD PROCESSING MISTAKES TO AVOID

Jan 13, 2016

“Recognize that there will be failures, and acknowledge that there will be obstacles. But you will learn from your mistakes and the mistakes of others, for there is very little learning in success.” – Michael Dell

Merchants should be well aware of both deceptive practices and good options in the field so to reach success. It is extremely important to read the terms and conditions of a merchant agreement before signing the document.

  1. Choose The Right Processor For Your Business Needs

When negotiating an account, discuss what is being offered to you with your second-in-line choice provider if the offer is too good to be true. Choosing the right processor in the field, merchants can enjoy the best possible rates and support for their businesses.

  1. Focus On The Contract Term and Early Cancellation Penalties

The processing agreement builds a contract between a merchant and the given processor. The duration of this contract is the very contract term that business owners should focus on by all means. Almost always, processing agreements have an early cancellation penalty. Early cancellation fees are usually based on monthly fees.

Especially startups should be well aware of the early cancellation fee before entering an agreement. Not every startup business achieves success. Processors like EMB  are very good at working with startup businesses and can be flexible with merchants starting their own businesses.

EMB is considered as the #1 credit card processor in the field. With its professional team of specialists, EMB offers the best payment processing services to your business needs. Open your eCommerce merchant account with EMB.

  1. Don’t Forget About Rates, Assessments And Downgrades

Pricing is one of the main factors when deciding on the right payment processor for your business needs. Get a proper understanding of merchant industry costs and read the contract to be sure you’d get what was promised.

The rate you’re going to pay depends on the type of payment card you’re using. The reason is that the cost from Visa or MasterCard (“interchange” cost) depends on the type of card used.

If you’ve received a pricing rate that sounds too low, and if corporate, premium, and foreign issued cards haven’t been discussed by the sales person, you should consider these points as doubtful. Pricing tactics cause damage when an unexpected surcharge is added to the cost increase from Visa and MasterCard.

  1. Be Aware Of Volume Commitments

Processing agreements may have volume commitments that merchants must satisfy. If they fail to satisfy them, increased discount rates or other financial penalties can be applied.

It is unfair to have volume commitments for most small and mid-sized businesses. As for startups, volume commitments are just unacceptable. Thus, it is important to make sure your processing agreement has no volume commitments.

Note that the above-mentioned volume commitments shouldn’t be confused with monthly minimum fees. The latter fees are considered as standard and are to help processors cover costs on inactive or dormant accounts.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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 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.

Live Chat