MasterCard Plans For Digital Enablement Fees

Aug 29, 2014

No matter your business, you could feel the effect of the changes in the charges recently announced by MasterCard to their pricing and charges to the merchant accounts. Even a high-risk business like an electronic cigarette merchant account could see a rise in the price they pay for services.

The charges are going to affect the amount of money the business is going to pay when the card transactions occur. The main issue, that this is going to affect is the work involved in the correct pricing of goods and services, in line with the new pricing structure, from the debit and credit card providers.

Another area of change is the wording from ‘card not present’ to ‘cardholder not present’ this allows for the increase in consumers who are using different techniques to pay for goods and services, which don’t even require them to carry plastic debit or credit cards. The facility uses their mobile technology, normally their phone, which can safely pay for goods and services using contactless payment technology.

Understanding where the changes are going to affect your business is more difficult than you might imagine. Being aware of the service provided to you, it is important to study the publication that highlights the changes to the business practice. This will ensure that you are fully aware of any new charges or increases in the money you already pay and the full effects this will have on your business, enabling you to increase business costs accordingly.

The digital enablement fees are just one example of the changes to the merchant accounts coming into force in the New Year. It is an example of the power that credit and debit card providers have over the industry, because of the buying power they offer to your customers.

Therefore, whilst these changes are going to affect business profits there is little a business can do to protect itself from the increased fees.

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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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