Is Opening a Merchant Account with Your Bank Really Your Best Option?

Jun 22, 2016

Access to quick funds mean flexibility for business owners. However, trying to juggle multiple accounts and cards can be a real pain. This is why many merchants choose to open a merchant account with the bank they already do business with. If you can trust them with personal finances, logically speaking you should be able to trust them with your business credit card processing, right? Maybe, maybe not.

Many merchants are drawn to companies like Bank of America and Wells Fargo because they promise next-day funding and value-added services. The added convenience of having all accounts in one place adds to the attractiveness of this offer. What merchants often fail to realize, however, is that this convenience is accompanied with higher cost.

According to, “It often feels like banks that offer merchant services (three we’re specifically interested in are Wells Fargo, Bank of America, and Chase Paymentech) get into the game solely to keep customers and obtain more of their business. And that doesn’t always equate to industry-leading practices or the best deals for merchants.”

In addition to the convenience of centralized accounts, banks often offer value-added services to merchant account holders. These services include: dispute managers, payroll and scheduling services, POS systems, e-commerce support and payment gateways, virtual terminal, mobile processing, loans and lines of credit, etc. But here’s what merchants often don’t know: none of the services listed above are bank-exclusives. These value-added services can be found with any decent credit card processor.

Many merchants also are unaware of who is really doing the busy work behind their contract. For example, while Chase processes payments directly for its clients, Wells Fargo and Bank of America do not; they process through First Data. While this is pretty common, as a business owner, you really need to be aware of who you are really choosing, and whether or not they are willing to go the distance for you.

So, is the Bank Your Best Option for Credit Card Processing?

The best thing you can do for your business is to stay informed about the payments industry. Banks are not necessarily your best option when it comes to securing a merchant account; it is neither the most convenient, nor the best suited option for your business. You can actually find the same services your bank is offering you – in some cases, even more – from a different payment processor.

Consider EMerchantBroker, for example. Even merchants that struggle to secure a merchant account due to being categorized as “high risk” with banks can obtain high risk credit card processing. Merchants also have access to our industry leading business funding options and electronic check processing (iCheck) services. Through partnerships with Verifi and Ethoca, we also offer merchants the very best in chargeback prevention and protection programs. In addition, funds are deposited into a business’ merchant account in as little as 2-3 days.

The moral of the story: research all of your options before you apply for a merchant account with your bank. You may find better services and options elsewhere. Go ahead and hear what your bank has to say, but then do your research. Consider your alternatives, and secure the merchant account that best fits your business’ unique needs.

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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