Mobile Payments and What it Means to Your High Risk Merchant Account

Nov 12, 2014

Every time you log into the Internet there seems to be another company trying to squeeze into the mobile payment market. ApplePay says they have created a way for consumers to pay with the iPhone6 that is virtually fraud-proof. This is a great idea and it may work – if your customers are purchasing via an iPhone6, and your bank accepts ApplePay. How would all this affect those with high-risk merchant accounts?

Large retailers like Walmart and CVS are teaming up with another inventor for a different platform altogether which is not limited to iPhones but the user could not tap his phone to pay for the purchase.

It is all a conundrum. What if your customers do not want to pay via mobile phones? Will they still be able to purchase using their credit cards in a card-swiped transaction or a card number and CVV in a card not present situation?

The high risk merchant is concerned with selling his product or service and having the settlement in his checking account the next business day. He cannot and should not have to spend time figuring out payment platforms and whether they apply to him or not. He does, however, want to be ensured that his payment processor is CPI compliant at all times and is keeping up with the latest trends in processing.

Where the new technology will help the high risk merchant account is that if and when a new platform is approved and rolled out, it should eliminate the possibility of any fraudulent transactions. These lead to a higher chargeback ratio which has earned the merchant a high risk label in the first place. While many new platforms are for mobile users only, the new innovations should be broadened to include all forms of payment – whether mobile or via PC, laptop, or home computers.

The latest innovations are stuck in limbo at the time of this writing. ApplePay is being shunned by many retailers because there may be additional processing fees on top of the 2%-3% already being paid. Does accepting this form of mobile payment mean the customers will have a surcharge on their purchases to cover the additional processing fees?

Then there is a new platform that is being heralded by such large retailers as CVS pharmacies and other major retailers. It does not have the safeguards like ApplePay but more consumers will be able to use it and the merchant will not have to pay additional fees. Yet this system has already been hacked in Beta testing where customers’ email addresses have been stolen. While less expensive than ApplePay, what good is new technology if it doesn’t protect the customer of a high risk merchant account?

Know this: when selecting a processor for a high risk merchant account you want a major player who keeps up with what is happening in the marketplace. You want someone who will come to you and suggest ways to keep your chargebacks under the 3% threshold. You want a customer service department that works for you and is always by your side for guidance.

There is a high risk specialist who offers this and much more. There is no application fee or setup charge. Several CPI-compliant gateways are available. You do not need stellar credit or a Visa and MasterCard license of your own.

To get approved for a high risk merchant account in  as little as 24 hours call 1-800-621-4893

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.