How to Succeed With Smart High Risk Merchant Accounts

Oct 14, 2013

Most of the nation’s merchant accounts operate in a high-risk area. It’s not something that you should worry about. It just means that you run the risk of having chargebacks. What the heck are chargebacks you ask? Simply put, they are refunds that went awry.

Let’s explain that

Pretty much any business you know of will have refunds. The Merchant Account servicers prefer that you take care of refunds before the customers call and ask the bank for the money back.

Their reasoning behind that is; that the merchant account servicer is responsible for the refund if the merchant can’t pay it back. That causes a real nervous condition for them. But they have a way to deal with it that is totally not unreasonable.

An account

A high-risk merchant account is nothing more than one that might have high chargebacks. And those can be dealt with in-house, so to speak. Take care of your customers. They deserve the very best customer service. After all, they chose YOU to do business with and they should have your respect. In return, take care of them. Doing so does two things; One, you will have a customer for life. And secondly, they will spread the word.

Dealing with the chargebacks

As you begin your high-risk merchant account, they will have a holdback or reserve for your chargebacks. Just in case one slips by, this money will cover any issues. Do not rely on it, for you don’t want it to be used at all. After your three to six-month trial period is over, they relinquish that money, in full, back to you. In the meantime, you have that awesome customer service going on. No one should slip by you and you have all those customers taken care of.

If you do get a chargeback, follow through with the customer, and find a way to make them happy. Send them the money yourself, or a coupon for something better. Get them taken care of. You don’t want to be in TMF jail. That is when you have blown a bunch of chargebacks and you didn’t take care of your customers. Not a pretty sight. Your merchant account will be closed and you will never have an account with that servicer again. A terminated merchant file, TMF, will set you off for five years. That’s a jail that will not make you money. Don’t go there.

As for the high-risk merchant account

You were smart enough to have the idea about doing business, so do it right. Take care of your customers; they are always right, no matter how wrong they are. They are the lifeblood of your business. Run your business with that attitude and you won’t fail.

And remember, a lot of the businesses across our nation are in the high-risk pool. That movie theater that you love, the airline you fly with, and even some of the grocery chains. So don’t fret, you have a great thing coming your way. If you have a business to run, go do it and do it great!!!


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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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