Missing More Card Payments | Increased Card Usage

Feb 06, 2017

Credit bureau TransUnion, an American company that provides credit information and information management services has recently reported missed payments on credit cards issued by lenders are higher than on older cards.

Credit Card Processing

Almost 3% of outstanding balances on credit cards given out in 2015 were at least 90 days behind on payments 6 months after they were originated. In 2014, the number was 2.2% and 1.5% for cards given out in 2013.

Subprime lending has recently increased, which plays a major role in this concern. Lenders increased subprime card lending in 2014. They have been giving out more of these cards recently.

On the one hand, consumer habit and ease of use contribute to the mentioned increase. On the other hand, the fact that consumers are more and more often shopping via their mobile phones boosts credit card usage as well.

According to the 2017 Mobile 500 report, mcommerce revenue was predicted to grow 53% to $220 billion in 2016. Some ecommerce growth statistics predict online sales via smartphone to surpass desktop sales by 2017. Mobile 500 ranks, profiles and details the 500 largest mobile commerce competitors across the globe by their annual mobile sales. Total global ecommerce volume is growing at less than half the mentioned rate.

Credit Vs Debit Cards. Card Fraud.

If you’re running an online business, consider turning to emerchantbroker.com to open a reliable and low-cost merchant account. EMB is voted the #1 high risk payment processor in the US and boasts an A+ rating with the Better Business Bureau (BBB). EMB is rated A by Card Payment Options and is one of Inc. 500’s Fastest Growing Companies of 2016.

A recent survey shows the majority of Americans (70%) would stop turning to the bank that rejected their credit card application and would apply to another bank for a credit product.

When it comes to credit and debit card usage, the amount of debit cards usage is increasing with rapid advances, which cannot be said about credit cards. This is based on a new study carried out in the field. Debit cards now count for 70% of payment cards worldwide, which is up 2% from 2014. The number is predicted to reach 72% by 2021.

As for credit card fraud, the US accounts for more than 1/3 of credit card fraud loss across the globe. The global losses for 2015 made up $21.84 billion; the US lost $8.45 billion (38.7%). Card issuers paid out $15.72 billion, and merchants and card acquirers lost $6.12 billion.

Fraudulent cards used at ATMs and payment terminals were the main reason for the credit card fraud. Global fraud loss grew by 20.6% as compared to the year 2015. Importantly, EMV liability shift in the US has helped mitigate the fraud risk in the country.


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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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