How to Succeed With Smart High Risk Merchant Accounts

Oct 07, 2013

A high-risk merchant account is the best account a merchant can have if you are in the high-risk pool. It doesn’t necessarily mean that you are high risk, it just means that you have three things against you. One; you are new to the merchant servicer and two; you have no credit to your history and three; you have a business in a high-risk area.

You need to be smart with your high-risk account. Follow their rules and take care of the customers and you can’t fail. Have a sound business plan that you follow and you should do just fine.

Don’t mess with your account

You don’t want to mess with your account or the merchant servicer. They can and will put you into jail. This means, you get filed and at last check, you stay in the file for the next five years. That won’t do you any good for your customers. So, find out what all the rules are for running and servicing your merchant account and follow them.

Don’t have chargebacks

With good customer service, you shouldn’t have chargebacks. You just return the money to the customer on the spot and then your chargebacks don’t happen. Avoid them at all costs. The less you have, the better your account will look to your merchant servicer. The better you look to your merchant servicer, the less likely you end up filed and on the list. It sounds much like you’ve been stuck in the corner by the teacher, but, it has greater consequences than you would ever think.

It could cause you to not ever be able to have another high-risk merchant account with another service. It goes onto your credit as TMF or Terminated Merchant File. That designation will haunt you for well over five years as people look into you for other options down the road. Things change and you just don’t want to have to fight with that forever. So, avoid it at all costs.

Be a smart cookie

You were smart enough to know you wanted to run a business. So, when you set up your merchant account, make sure that you cover all the bases on what you will be selling. You don’t want to be a used clothing store and sell a used car that you took on trade for something. That would put you right up there with an alert and a lot of issues. Whether you meant to or not, you just messed up your account.

So be a smart merchant with your new high-risk account. Follow all the rules and ask questions about your new account. Find out about all the what ‘if’s’ and make certain that you understand what you are getting yourself into. Make sure that you are comfortable with the merchant that you have chosen to be with and understand what their services mean to you.

If you aren’t sure about something, do the smart thing and make sure that you cover all the bases so that you do understand. It can only do you good.




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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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