Merchant Account for Payday & Title Loan Company

Feb 15, 2013

Once upon a time cash was the medium of payment for goods and services bought; however in the modern world, credit and debit cards are the preferred choice for payment. Thus a merchant account is absolutely necessary for not only face-to-face sales but for those via phone or internet. Merchant accounts for payday loans companies are vital – but often hard to obtain.

Why Do Some Businesses Have Difficulty in Opening Merchant Accounts?

The biggest risk to credit card processors is the chargeback fee. Note that this is NOT a refund. Under the regulations established by MasterCard, Visa and Discover, a merchant’s processor is 100% responsible for all merchant transactions. Should the merchant conduct business illegally or with high risk customers who may generate chargebacks, the processor is potentially liable to millions of dollars in losses. Businesses who deal with high risk customers include so-called “adult” oriented products and entertainment, ecigarette providers, firearm merchants, online pharmacies – and payday loan brokers.

It’s not easy finding an equitable and trustworthy merchant account solution for brokers who deal with payday loans. Since payday loans are assumed to be high risk, many providers such as large banks will only offer their services under unfavorable terms and fees to cover the perceived risk of processing payments for a payday loan merchant account. But in order to do business in today’s market, a legitimate player must have the capability of accepting payments from check writers and debit and credit cardholders – and at an acceptable transaction rate.

Getting a Merchant Account for Payday Loan Brokers

The ideal option for the payday loan broker is to choose a merchant account provider that specializes in providing an Automated Clearing House (ACH) for high risk credit card holders and Check Clearing for the 21st Century (Check 21) for check writers. They should be able to tap into other means of capturing revenue such as Point of Sales (POS) solutions and web payment processing. eMerchant Broker can find the right payment processor – with dozens of providers within their network, their merchant advisors will find the provider that best suits the unique needs and challenges of the payday loan broker.

Why eMerchantBroker?

Utilizing a veteran staff of merchant advisers who have received thorough training and certification, eMerchant Broker will compare rates and offers from the leading credit card processing companies to tailor a solution that best suits the payday loan broker’s needs. eMerchant Broker’s  decades of combined experience in high risk merchant services ensures that their clients will have accounts set up properly to begin processing transactions quickly and smoothly. In fact, eMerchant Broker is so confident in their abilities to best serve payday loan payment processing needs that they offer the ‘100% Worry Free Guarantee.’ If you’re dissatisfied with the initial provider, eMerchant Broker will find a new provider within their network and they won’t charge a cancellation fee. They’re also an ‘Accredited Business’ with an “A” rating from the Better Business Bureau.


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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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