Payday Loan Merchants Selling Annuities?

Jul 23, 2015

If the Wisconsin Senate gets its wish, the state’s payday loan merchants could start adding on services. From annuities to insurance to financial advice, this new bill has folks scratching their heads. While payday loan merchants know that most coming in are in need of financial help, the fact that they are offering up financial services seems fitting. However, due to the huge interest rates that often accompany these loans, critics see this move by the state Senate as being confusing. The industry has long been judged harshly, and the judgment is liable to get worse if this bills passes and is signed into Wisconsin law by Governor Scott Walker.

However, if it does pass it is not terrible news. Many who frequent payday loan merchants are in need of financial help. By offering up these services – along with insurance – could make consumer lives better. There are currently 320 payday loan locations in Wisconsin, and each could use their buildings to offer up services that people need, in terms of financial stability and overall insurance. The insurance being floated around is not health insurance, but rather auto insurance, which is something that everyone should possess, regardless of where they buy it.

This is also tricky for those who offer up payday loan merchant accounts. Some may not want the added issue of covering auto insurance sales and financial services sales. No one can blame them, as the industry is risky to begin with. However, this should not be a reason to jack up processing rates to drop companies, but this is bound to happen if the bill passes and is signed into law. The main thing that payday loan merchants in Wisconsin can do is to make sure that their payday loan merchant account provider is 100% committed to them before any changes happen. If you cannot get a clear answer, search around for a new processor. It can be hard to change processors, but your processor is one of the most important things that you need for your business, and you heavily depend on it. You deserve the best, so make sure that you have the best.

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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.