Is Over-Regulation Real? The Payday Loan Industry May Soon Find Out

Mar 18, 2015

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.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat