Prepaid Calling Cards a High-Risk Business Venture

Nov 25, 2014

The type of business you are in will depend on the classification given by the high street banks. The businesses they consider more risky, the less likely they are to offer their services.

The type of businesses that have resulted in this classification can be in a number of different areas. It depends on a number of different factors including whether the majority of your customers are internet based. One area that might surprise you as being high-risk is prepaid calling cards.

There are high instances of chargebacks and disputes, especially if they are online. This is changing with the introduction of regulations in this business sector.

It will mean that the customer and the businesses will need to follow guidelines that are currently missing from an unregulated area of business. The proposal is in a 900-page report and tackles all the main areas of this currently unregulated business, it will have the benefit of allowing genuine businesses to grow their business and supporting their customers too.

Even when these regulations come into force, you can still apply for a prepaid calling card merchant account. These are from high-risk merchant account providers; they are prepared to take more of the risk than typical banks. They are able to provide you with the service you require to meet the needs of your customers who want to pay for their goods using their credit or debit cards.

Therefore, you will be able to provide your customers with payment options and this is important. However, it is equally important that you get a great service and are not penalised by the company because you are a high risk. Choosing the right merchant provider that specializes in high-risk businesses is important, one that doesn’t charge for the application process or has high rates for the transactions.

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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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