Millions of Fake Wells Fargo Accounts | What The Scandal Means For High Risk Merchants

Sep 09, 2016

Have you heard about the huge scandal at Wells Fargo? Well, it’s huge – in fact, millions of fake accounts huge. Yup – employees were setting up fake accounts and credit applications without customers’ knowledge. This can be damaging to any consumer, and merchants, as credit reports typically list any loan or credit card inquiry.

The inquiry concluded that almost 2 million accounts were opened without customer knowledge by over 2,000 employees. This helped their monthly “quota”, that most bank employees have in regards to opening new accounts and credit inquiries. Additionally, Wells Fargo employees also submitted applications for 565,443 credit card accounts without their customers’ knowledge or consent. Roughly 14,000 of those accounts incurred over $400,000 in fees, including annual fees, interest charges and overdraft-protection fees. While the bank is going to reimburse those who have been affected, this cannot repair their credit damage.

Not only can this damage consumers, but also merchants. If you have noticed anything odd in your banking, and you use Wells Fargo, contact their fraud department to report it. But, what happens if you are a merchant and due to these issues have been placed on the TMF list? You look for a high risk merchant account provider.

Looking to EMB or another high risk merchant account processor is your best bet of obtaining your much-needed merchant account – but not all are created equally. Some are focused solely on the “high risk” industries (i.e. adult toy sales, e-cig sales, etc.) and not issues that come from bad credit. You need to make sure that whomever houses your merchant account is familiar with your issue, and can help guide you along the way. Another thing you need to look for are fees. Many who claim to cater to “high risk” merchants jack up processing fees. This is not right, but thankfully there are a few who do not do this.

The Wells Fargo saga is far from over – especially for the consumers and merchants who have been affected. If you think you have been contact their fraud division as soon as possible, and if you are a merchant contact your merchant account provider to see where you stand. If your rates are going to jump, perhaps it is time to leave.

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

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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.