Is Bitcoin Really That Risky?

Feb 18, 2014
Bitcoin-Money

The online currency of Bitcoin is receiving lots of attention this month, but not the good kind. News has spread quickly about the halt on withdrawing Bitcoins from the exchange, imposed by the currency’s Tokyo-based processor, Mt. Gox, due to a “technical malfunction”. As a result of this, the value of Bitcoin dropped by 8 percent on February 7th.

Only the previous day, Russia had made the decision to class Bitcoin and other virtual currencies as being illegal. Plus, not long before, in late January, it was reported that New York State plans to regulate Bitcoin after the arrest of two individuals in the state, who had used the electronic currency to purchase illicit drugs. In mid-January, the attorney general’s office in the southern district of New York confessed that it had seized millions of dollars of the currency from the drug trafficking website, Silk Road. Authorities also had to confiscate the website owner’s very own personal stash of Bitcoin. It is reported that this stash added up to a staggering 144,000 Bitcoin units, which is worth about $130 million, and this figure does not include the $28 million worth of units that were seized from the website itself.

Clearly, the digital currency that has taken the world by storm is not being used in a good way at all. In fact, it is being abused. The currency is said to be highly resilient to whatever regulations are imposed on it, due to the school of thought that it is a mathematical value, rather than a monetary one. Tom Waters, Director of Sales at Bank Associates Merchant Services, says, “It is a mathematical solution to a logic problem. The driving force behind the growth of the Bitcoin ecosystem is not traced to any one person, corporation or political agenda.” He added, “If the innovators who build new technologies around this protocol are prohibitively regulated or policed, the economic progress surrounding Bitcoin development will simply shift to less regulated nations. Progress might be delayed, but it will be virtually impossible to stifle or kill altogether.” Quite clearly, even the most powerful might have trouble controlling the electronic currency.

The above evidence just proves the theories that Bitcoin, the digital currency that has changed everything, can bring only one word to mind: trouble. These characteristics of the currency attract criminals to use it as a money laundering instrument, and as a way to make purchases on illegal items. The more nations that make a stand against Bitcoin, the better.

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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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