How to Reduce Payment Processing and Operational Costs

Jul 23, 2018

Every business has to manage payment processing and operational costs. You simply cannot have one without the other. However, because the businesses that provide these services are also trying to make money, these costs can get expensive quickly. In many cases, they are much higher than they really need to be.

Here are a few ideas on how your business can reduce payment processing and operational costs:

Payment Processing Fees

The first place to start in minimizing payment processing fees is negotiating. Most transactions are credit card based nowadays, not cash-based. What does that mean for your business? Credit card payments typically require third-party verifiers that charge fees for their services. This means your business has the opportunity to negotiate with credit card processors for lower rates.

“Processors, just like any other business, can negotiate with their suppliers off of the volume of processing their clients compete. The more you give them, the more negotiating power they have upstream to lower their overhead in different areas. IN turn, they can lower your rates if that is worthwhile to them,” explains Executive Director of Total Apps, Rey Pasinli.

Operational Costs

The key to reducing operating costs is to embrace automation. Advancing technology has made it possible for business owners to free up valuable time and energy by automating many outdated processes. For example, many businesses choose to automate their invoicing processing. Others automate sales/CRM, ticketing (for businesses the specialize events), assigning tasks, etc.

Automation is also very effective when it comes to managing leads. Noting and nurturing leads is a very time-consuming process. Utilizing technology allows businesses to effortlessly pinpoint patterns and connect with potential customers. Rather than getting tied up sifting through seemingly endless lists, employees can move on to other tasks.

High Risk Merchant Account

To reduce both payment processing fees and operational costs, many business owners broaden their search to include alternative providers, like With an alternative provider, businesses can find solutions that are hard – or impossible – to find elsewhere. Business considered “high risk”, for example, struggle to find payment processing in the first place (not to mention options they can afford).

What makes a business risky? On a daily basis, banks turn down online merchants that have excellent credit scores and solid revenue streams. The fact that it is not a brick-and-mortar business or that it does not have enough assets makes traditional lenders nervous. Businesses that have poor or no credit, limited time in business (startup), risk industry or business type or bankruptcy history have even more obstacles in their way.

A high-risk merchant account from a provider like EMB solves these merchant’s payment processing dilemma. Merchants not only secure needed payment processing solutions, but also gains a host of other (affordable) financial and payment solutions their business needs to grow and prosper.

With EMB, merchants are offered:

  • ACH Processing
  • Business Funding
  • Chargeback Dispute Resolution and Prevention Programs
  • Instant Check Processing Solutions
  • Merchant Cash Advances
  • Mail Order/Telephone Order (MOTO) Processing
  • Online Payment Gateways
  • Point-of-Sale (POS) Solutions

How to Get a High-Risk Merchant Account

Applying for a high-risk merchant account is a fast and hassle-free process. Once you have completed the application procedure, your processor will send it to the underwriting team for review. You can have your account and payment processing setup in as little as 24 hours. The typical requirements are simple and straightforward:

  • A valid ID (e.g. driver’s license)
  • Printed voided check or bank letter
  • Most recent bank statements (for the last 3 months)
  • Processing statements (for the last few months, only if applicable)
  • A social security number (SSN) or employer identification number (EIN)
  • Your chargebacks must be below 2%

Do you want to reduce your payment processing and operational costs? Would you like to learn more about a high-risk merchant account? Contact the team of experts at EMB to learn more and/or start the application process.

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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