Fed Details Faster Payment Processing Plan

Feb 12, 2015

The details of the Fed’s newest plan for faster payment processing have been released. EMB clients who are reliant on fast payment processing, such as e-cig merchant account owners, will find the progress encouraging. The Fed’s plans outline specific sectors of payment processing to receive upgrades as well as possible approaches to the undertaking.

Sluggish payment processing is the bane of many online and credit-based businesses. E-cig merchants, for example, often are hindered by state laws that restrict retail outlets, shipping, and basic commodities necessary for a Vape shop. As a result many of these businesses rely on online approaches to business as opposed to traditional retail locations. Online shops require credit and debit payment processing. Even if a business has an e-cig merchant account from eMerchantBroker.com, faster payment process will be a boon to merchants.

The Fed has targeted peer-to-peer payments, person-to-business transactions, business-to-person payments, high-value business-to-person payments, and business-to-business transactions. These five forms of payment account for more than 29 billion transactions in the United States. The Fed’s method for enabling these areas to be modernized is to utilize stakeholders to help identify effective approaches. An efficient transaction network would greatly benefit the payment processing industry as a whole, impacting even small businesses and merchants like those at EMB.

The proposal outlines a 10-year plan and cooperation and inclusion of the NACHA and Clearing House, though their involvement is unclear at present. The bottom line is that faster payment processing will benefit the US greatly. Small businesses will have less to worry about, particularly in the high risk sectors, as payments both in and out of their merchant accounts will be smoother and faster, allowing for a more efficient business model. The UK already features real-time payment processing and the calls for the Fed to modernize the US system are overwhelming. The Fed’s plan is a step in the right direction, but everyone involved hopes for accelerated efforts over the next year.

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 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.

Live Chat