How To Avoid Serious Credit Card Processing Mistakes With Your eCommerce Business

Apr 19, 2016

When eCommerce appeared as a brand new concept, it wasn’t affordable. Nowadays, there is nothing complicated about eCommerce, and most banks and payment processors consider it high risk.

Points to Consider When Turning to a Payment Processor

When applying to a payment processor, merchants should focus on several important issues before signing a processing agreement. It is critical to research and get a proper understanding of what you are getting into. Below you can find several important points to take into account before you enter into a contract with your processor.

  1. Contact Term and Early Cancellation Penalties

Contracts have a duration known as the “contract term.”  Major processors in the US and Canada have a contract term. As a rule, contracts have an early cancellation penalty. Most processors charge an early cancellation fee, which is based on the monthly fee. A cancellation fee should be addressed before signing the agreement.

  1. Interchange Downgrades and Rate Fluctuations or Hidden Fees

After you’ve signed the contract with your processor, you may not receive the pricing promised by the sales person. The rate to be paid may fluctuate based on the type of the card used. The reason is that the “interchange” cost or the cost from MasterCard and Visa depends on the type of the card used. Read the merchant agreement to make sure you would receive what was promised.

Focus on the clauses related to rates, downgrades, and assessments from the card associations such as Visa and MasterCard. Find out if there is anything that might be a surcharge, and make sure you understand the pricing before you sign the contract.

  1. Negotiate

When receiving an offer that sounds too good to be true or is below interchange, use the competition in the field to get the best for you. With a true professional in the field like EMB, you can get a reliable and affordable eCommerce merchant account for your company. EMB, #1 high-risk processor in the US, offers one of the lowest rates in the industry. EMB will do everything possible to support you and help you succeed.

  1. Terms and Conditions of Your Merchant Agreement

The terms and conditions of the merchant agreement are included in your application paperwork. They regulate the service provided and the relationship between your business and the credit card processor.

Merchants are usually frustrated because of the fluctuating pricing. The thing is that some processors don’t give a proper explanation during the sales process. So don’t fail to read the T&C of the merchant agreement before entering into it and providing your application.

  1. Volume Commitments

Some merchant agreements include volume commitments that must be satisfied by the merchant. This means the merchant must process a certain amount of dollars each month. If he/she fails to satisfy this volume commitment, the discount rate can go higher or certain financial penalties can be put on him/her. Find out if there are any volume commitments in the processing agreement.


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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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