How to Reduce Reserve Rates for High Risk Merchant Accounts

Jun 30, 2017

Is your business tabbed as high risk? Do you need to open a merchant account to grow your business, but you aren’t sure you can afford the high reserve rates? If you’re trying to find a way that will help reduce the rate you will have to pay, be aware there are ways to help lower reserve rates. Below you can read the ways to lower required reserve rates for your high-risk merchant account.

Reduce Reserve Rates with

Turn to EMB, the #1 high risk payment processor in the US that boasts an A+ rating with the BBB and is rated A by Card Payment Options. EMB is named one of Inc. 500’s Fastest Growing Companies of 2016 and offers exceptional payment processing services to merchants of any type and size. EMB has developed a process to help companies manage payment processing and mitigate risk and reduce associated costs. If you’re interested in reliable and low-cost high risk payment processing, turn to EMB.

Control Chargebacks

If you want to lower reserve rates, you should reduce the number of chargebacks you process each month. Most merchant account providers offer chargeback management and monitoring, but these services vary from provider to provider. If you have less monthly chargebacks, the amount of your reserve rates may drop, depending on your account provider. Moreover, you may try to negotiate the initial reserve rate.

Choose Another Billing Cycle

If you change the billing cycle to a monthly payment, you’ll have greater chances of enjoying significantly reduced chargebacks. Monthly charges are more common, and you can remember them more easily. Also, they guarantee more security and cash flow for the business offering the services or products.

Sell Your Own Products

The quality of the product and brand reputation may be brought into question if the number of chargebacks grows. If you sell your own products or services, you’ll be able to enjoy lower risk and potentially reduce required reserve rates.

If you’re a high risk business, follow the above mentioned tips to reduce reserve rates for your high risk merchant account.

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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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