Looking at the Costs Involved for High Risk Credit Card Processing

May 09, 2014
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The devil’s in the details and for high risk credit card processing the details are critical. There are multiple factors to consider when you’re setting up credit card processing. Here’s an overview of the major variables that can impact the costs of high risk credit card processing.

Choosing a Merchant Services Provider

This is the first step and it can determine how well the rest of your processing runs. Choosing a poor quality processor can wreck your efforts to keep costs down before you really get started. Some good, grounded advice is to not look for the lowest rate available. Look for the most competitive rate. Low rates are usually just pretty fronts for ugly hidden fees and fluctuating rates. Check out their application fees, for example eMerchantBroker charges no application fees. Some processors may decline you just to get a second application fee. eMerchantBroker has been rated with an A by the Better Business Bureau and is a three-time top credit card processor by TopCreditCardProcessors.com.

Examine Fees and Rates

There’s a long list of fees and rates you need to investigate before you sign on for a merchant account. Beginning with application fees and ending with termination fees—with everything between. You’ll want to see what their monthly fee is and whether there’s a monthly minimum. Are there any cancellation fees and how does your provider handle interchange rates? You’ll also need to see if there are fees for integrating their system into your current transaction system. Is there a fee simply for contacting their customer service? Finally, comb through the terms and conditions with a fine-toothed brush. By nature legal documents are technical and involved, but you need to understand, for the good of your business, what exactly you’re signing into.

Find the Right Fit

Finally, you want to find a service provider that is the right fit for your business. They should be interested in your business’ growth just as you are. They should also be able to find a merchant account tailored to your high risk credit processing needs. eMerchantBroker has years of experience finding merchant accounts tailored for specific high risk sectors. Let our team find you the merchant account that will best facilitate your high risk credit card processing.

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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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