Get a Negative Option Billing Account

Jul 07, 2017

Negative option billing isn’t very new to merchants. For quite some time now, sellers who have new products or services often consider giving them out for tree trial before customers can decide whether to make a purchase or not. It is an excellent way to attract interested consumers.

This is what happens; someone comes across your products and takes an interest in it. But since it’s something they have never interacted with before, they are not very ready to pay for it. So, you allow them to use it for free for a given period (commonly 14 days or 30 days) before making a decision. If at the end of the trial period they like the product, they can pay for the premium option from their credit cards. Otherwise, they are free to cancel their membership.

While this setup works very well for merchants and their customers, apparently it has some loopholes that authorities aren’t happy with. For instance, the Card Association (which includes major card processors such as MasterCard and Visa) came under intense criticism from Congress last year. According to Congress, merchants offering products such as weight loss supplements were using negative options billing to force consumers to buy their products.

For instance, some merchants would offer free trials, or heavily discounted initial offers to woo customer to sign up. Once a consumer signed up, they would be charged regularly without the chance to opt out. The major problem was that consumers sometimes didn’t even know what products they were signing up for and the seller didn’t offer enough information to help them make better decisions.

This resulted in numerous chargebacks as merchants refused to offer refunds or when customers couldn’t recognize the charges on their cards. The Card Association testified before Congress and soon called on merchant account providers to put an end to this trend. This is why most merchant banks currently don’t offer these services.

There is no denying that negative option billing carries a lot of risks, especially in the form of chargebacks. However, considering the potential benefits of such arrangements, barring merchants from opening a trial offer merchant account altogether would be uncalled for. This is why now allows merchants wishing to engage in genuine negative options billing to open an account and proceed with business.

EMB is a reliable merchant account provider who has helped thousands of merchants like you before. There are no application fees to worry about and the rates are very competitive.

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

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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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