Pros and Cons of a Payment Aggregator

Dec 13, 2019

In 2018, eCommerce represented about 14.3% of total retail sales, and that number is only expected to go up every year. Being able to conduct business online allows you to connect with a wider group of consumers while lowering your overhead cost of renting space and paying employees. However, to accomplish this, you need a dependable way to process payments. 

A payment aggregator allows mobile or online businesses to process payments without the need for setting up a merchant account through a bank. Instead, payments are processed on your behalf by a third-party.

While a handy tool for getting started with eCommerce, there are both benefits and drawbacks to this type of payment processing.


Setting up a merchant account can require a lot of time and tracking down and submitting various paperwork and documents. On the other hand, setting up an account with a payment aggregator usually requires very little paperwork. It can also take less time for your application to be processed, allowing you to start accepting payments sooner.

Most payment aggregators also provide their services with a flat fee. This makes it easy to budget and know what you’ll be paying upfront. Most payment aggregators also don’t require a long-term contract so you can shop around and find the one that’s best for you.

If you’re a newer business or process a relatively low number of transactions every month, a payment aggregator will be less expensive in the short-term than having a merchant account. Because there are usually no-startup fees, this makes it easy and convenient to get started right away.


While it’s quick to set up, it’s not as quick to receive your funds. Because the payments first need to go through your payment aggregator, they have control over when you receive your money. While most payments are dispersed within 24-48 hours upon receiving, it can take longer in some instances.

Suspicion of fraud can also have severe consequences for you because the payment aggregator is assuming a certain level of risk on your behalf. If your account starts showing signs of fraud, the payment aggregator can place a hold on it, creating an extra level of inconvenience and hassle for you.

As your business continues to grow, you can expect your fees to grow as well. Many payment aggregators even put limits on how many transactions you can process every month which can severely limit your ability to expand.

The Takeaway

While a payment aggregator can help get your business up and going in the digital world, it’s not typically an ideal solution for businesses long-term. This is especially if your number of transactions is growing steadily.

However, if your business is consistent and you want a consistent fee structure to go along with that, a payment aggregator can be the optimal solution. 

Weighing the pros and cons and researching specific payment aggregators can ensure that you are getting the services that make the most sense for your business.

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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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