How Synthetic Paraphernalia Can Deter Merchant Acquirers

Dec 06, 2016

Synthetic pot may not sound harmful, but it is. A case study outlined by G2 last year highlighted a food ingredients company laundered for a spice drug syndicate. The psychoactive substance, also known as synthetic marijuana, potpourri, herbal incense and K2 continues to gain popularity. This year alone, spice has captured widespread media attention, following mass overdoses in FloridaNew York and California.

This makes it hard for merchant acquirers to trust these businesses. And, it isn’t synthetic pot shops that are selling “Spice”, but rather convenience stores and local mom & pop shops. So, you can see how “Spice” and other synthetic marijuana products can cause issues. But, the problem doesn’t just hit those who sell it. Merchant account providers are cautious to house merchants due to these risks. They are legitimate risks, but merchants still need merchant accounts. So, what do you do? Well, you look for the best choice for your business.

We all know that no two merchant account providers are the same. Some cater to mainstream businesses, and others cater to high risk businesses. But, all high risk businesses are not all the same, so if you have a high risk business this makes it even harder to get a merchant account. You need to ask questions. Ask if they have dealt with your specific business and its specific issues. While a convenient store may have issues with synthetic pot, a car dealership is not. While both industries have high chargeback percentages, they are totally different businesses, and you need a merchant account provider who recognizes this.

Also, look to other merchants in your area with similar businesses and ask their opinions. This is often the best free advice you can get. Checking out industry ratings and the Better Business Bureau (BBB) is a great opportunity, too. And never be afraid to back away if the merchant account provider you are interested in isn’t cutting it. Never sign on the dotted line unless you are 100% sure. This is your business and what you do for this can help set your business up for success – or failure.

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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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