How Does Merchant Account Load Balancing Work

Jul 16, 2019

Merchant account load balancing gives merchants the ability to divide transactions across multiple accounts. It is an account management tool that helps merchants minimize risk and increase processing volumes.

Preparing for Challenges

Frozen or terminated merchant accounts can dramatically impact your bottom line. Load balancing helps. By juggling transactions across a few merchant accounts, you can still can continue to operate and accept credit card payments if one account gets temporarily or permanently shut down.

In many cases, merchants can load balance multiple accounts using one dashboard, which include pre-set limits for processing volumes and ticket amounts. Establishing these parameters keeps away ire from credit card merchant processors.

How Load Balancing Can Help

Operating a small clothing store or a coffee shop likely doesn’t require you need to work with more than one credit card processor. However, if you operate more than one business, handle a large volume of sales, or sell expensive items, you may want to consider merchant account load balancing.

High-risk merchants, specifically, will appreciate the ability to monitor monthly processing caps by adopting automated processing limits.

Most importantly, relying on one processor when working in the high-risk sector is not a great strategy due the strict underwriting guidelines outlined in accounts. Most include sales and ticket-size caps to protect banks from risk.

Processing outside the guidelines of your merchant agreement can lead to frozen accounts, holds on large sums of sales, and terminated merchant accounts.

Though businesses set up more than one merchant account, they should be integrated into a single payment gateway to minimize risk and balance operations.

Load balancing also helps cut down on chargebacks. Load balancing allows businesses to divide their processing volumes across multiple accounts from different acquirers. It can help you differentiate between different products and sites you own, which allows you to provide more accurate descriptions. Having clear billing descriptors can help eliminate chargebacks because it cuts down on cardholder confusion and disputes.

Additionally, load balancing can safeguard you from the risk of chargebacks that occur due to supply chain problems or failed product launches. For instance, having transactions spread across multiple accounts protects you from losing your one and only account to a new endeavor that failed.

Additional Advantages of Merchant Account Load Balancing

When merchants begin load balancing, they manage accounts better. They can easily see when they are about reach processing limits or have sold too many high-ticket items in a single month.

Additionally, merchants get rid of function redundancies and improve productivity because load balancing allows online businesses to view their accounts individually or globally.

Finally, merchants can better manage and reconcile accounts because they can view all transaction from one dashboard. Also, merchants save time because they only need to gain access to dashboards with one login and password.

In Conclusion

Merchant account load balancing ensures that you never have to close down shop due to a frozen account. Even a temporarily closed merchant account can ruin your business. You will no longer be able to accept credit or debit card transactions, which is doomsday for a business that works exclusively online.

The best way to stay ahead of the game is to spread transactions across multiple merchant accounts. Doing so, limits risk by helping you keep track of volumes and prices. Staying in line prevents you from putting your account at risk.

Apply for Merchant Account Services

If you are in need of a merchant account, apply for one with (EMB). It offers a simple online application process, and eligible applicants get approved in a few days. Additionally, it works with high-risk businesses.

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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