Some states and lawmakers want more stringent laws concerning payday loan companies. What they do not realize is that for the few bad seeds, there are hundreds, if not thousands, of respectable, legitimate payday loan companies that are suffering. A few years ago, stiff regulations were enacted, and since then, very few problems have come along. South Dakota wants payday loans gone all together. While this may seem like a good way to get rid of leech companies, they make consumers and legitimate companies suffer. In addition, a South Dakotan could always go to a neighboring state to get a payday loan. While not the most ethical thing to do, companies have granted payday loans to those living in neighboring states in the past.
So, if you are a payday loan merchant, what do you do? Tougher regulations tend to me higher processing fees and the risk of having your merchant account flagged or closed. The threat of tougher regulations and state banning has merchant account providers scrambling to raise their processing fees to protect themselves, or cancel out their payday loan merchant accounts. This can leave you without a way to accept payments, and issue loans. You need to turn to a respected, reliable, and dedicated merchant account processor, such as EMB.
With EMB, your payday loan merchant account is secure from closing if states banish payday loan companies. We offer industry-standard rates, and we do not punish, or otherwise flag or close accounts for having a fraudulent charge. EMB is also one of the only processors to offer its payday loan merchants the ability to obtain chargeback insurance, which can help keep your chargeback fees low. Chargebacks are what happen after you are charged with a fraudulent transaction, and they can damage even the most lucrative company. Their fees can be upwards of 270% of the original charge, which can quickly add up, especially in cases of mass hackings. Your best bet is to contact EMB today, whether you are a new merchant, or are just unhappy with your current payday loan merchant account processor.