How To Secure A Gold And Precious Metals Merchant Account

May 05, 2020

A gold and precious metals merchant account is necessary for your payment processing needs.

When it comes to precious metals, they are considered highly valuable because they are rare to find. Each year, only a minimum amount is produced and therefore their scarcity is the reason for such a high value.

One of the most popular metals in the world is gold. It can be used for industrial  and  financial purposes. Investors the world over possess gold instead of having other investment assets since gold is considered to be money. In fact, precious metals are considered “the oldest form of money in the world.”

If investors begin to doubt the value of paper currency, gold and other precious metals have historically retained their value. During times of economic uncertainty, gold and other precious metals are a “store of wealth”.  

If you would like to join the highly profitable, gold and precious metals industry, you will need a gold and precious metals merchant account.

Opening Up A Gold And Precious Metal Merchant Account

Since you will be considered a “commodities dealer”, this industry is classified as a high risk business due to its “high ticket sizes”. Furthermore, this industry does experience a lot of fraud from customers and some fraud from the dealers themselves. What also complicates things is that most payments are processed via a payment gateway, which also means there is no interaction with a sales person to verify the identification and signatures. As a result of these potential risks, including chargebacks, getting approval for a regular merchant account will be virtually impossible.

However, you can do a few things to increase your chances of acquiring a gold and precious metal merchant account:

  1. Prove the legitimacy of your company – This is best accomplished by operating in full compliance of your country’s regulations.
  2. Show your license or proof of registration with important government bodies if you decide to sell precious metals.
  3. If these precious metals are being stored, you must provide evidence of secure facilities. This can be in the form of signed agreements with the facility, pictures of the inventory, and close-up pictures of certain items.

When searching for a high risk merchant account provider, make sure that they have had a considerable amount of experience working with this industry. Ensure they are well-acquainted with its regulations. It would also be crucial that the merchant account provider has some type of chargeback assistance and resolution resources. It will also not hurt to investigate whether they would give you the volume capacity to grow your business.

To further build your processing history, consider taking ACH payments for lower risk of payment and chargeback reversals, E-checks, and MOTO payment processing.

Finally, another way to ensure that you will be approved for a gold and precious metal merchant account is to keep your chargeback ratios low and maintain a good reputation for your business.

Closing Thoughts

As a gold and precious metals merchant, you will be automatically categorized as a high risk business. That is why you need to research the best high risk merchant account for your specific needs. Do know that even then, you may experience chargebacks and other fraudulent activity. Therefore, it is critical to make sure that these companies have some sort of resource and platform in place to fight chargebacks.

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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