It Pays to Know About Your Processing Options

Sep 18, 2017

The merchant payment landscape in the US is undergoing rapid technology-driven changes. Mobile, online, and social technologies have brought a real revolution in the way consumers get access to information. Also, the growth of these technologies leads to an increased demand for new services that can support multichannel commerce, big data analytics, enhanced loyalty programs and targeted advertising.

Both for payments and non-payments companies, new merchant services are attractive areas for growth. To process payments, merchants can use the services of either a merchant aggregator or a merchant services provider. Below you can read more on merchant aggregators and merchant account providers.

Merchant Aggregators

Payment processing aggregators like PayPal, Square, Google Checkout, Stripe and Amazon Payments allow merchants to accept credit card and bank transfers without having to set up their own merchant account. With a merchant aggregator, small and medium-sized ecommerce-driven businesses can process payments on a platform owned and operated by the aggregator. The platform is shared by other merchants.

  • You, as an individual merchant, can view and monitor your own account but can’t access the other accounts serviced by the aggregator
  • Fees are typically fixed, so the rates can become pricey as merchants process more
  • Lower individual and annual processing limits
  • Aggregators can withhold funds if they wish
  • Quick-and-easy setup
  • A lower barrier of entry
  • They assume most of the risk for payment fraud themselves and can impose their own standards on their merchants. As a result, your account can be frozen or terminated if it’s associated with fraudulent activities.

Merchant Account Providers

With a merchant account provider (payment processor), ecommerce businesses can process their payments, through their own dedicated, traditional merchant accounts. These are essentially bank accounts in the form of legal agreements between the business owner and an acquirer. In this case, the account provider acts as a liaison between the two parties.

The acquirer assumes the risk of credit card payment processing. The account provider sets up a merchant account, and negotiates the setup and processing fees on behalf of the merchant. Also, the processor can provide the actual processing technology or negotiate those fees as well. After the account has been established and the fees negotiated, the merchant becomes the exclusive owner and takes the control of the new account.

A respectable payment processor and business funding provider like offers the lowest possible rates and the best merchant account services, including high risk merchant accounts, in the industry. EMB, the top high risk merchant account provider in the US, boasts an A+ rating with the BBB and an A rating with Card Payment Options. Also, EMB is named one of Inc. 500’s fastest growing Companies of 2016. With EMB, you can get unmatched chargeback prevention and protection services, and enjoy a simple and hassle-free application process.

  • Merchant account provider offers a personalized service
  • Rates can be tailored to the needs of each individual business
  • Rates can better accommodate growth as your payments volume increases over time
  • Though the application process can be lengthier than that with an aggregator, you can turn to a reputable payment processor that will make things easier for you
  • More competitive pricing as merchants expand their online business and processing needs
  • Faster payment processing times
  • Fewer if any service interruptions
  • No unforeseen account freezes or terminations without sufficient notification
  • Funds typically appear in the account within 1-2 business days

Take the time to evaluate the pros and cons related to merchant aggregators and merchant account providers to make the right decision.


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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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