Quick Payment Processing Plan Released By Federal Reserve

Feb 13, 2015

After much anticipation, the Federal Reserve has at long last released their blueprint for faster payment processing in the United States. Despite the Fed’s caution and wary approach, those in the payment processing industry, especially those with payday loan merchant accounts, are eagerly anticipating the modernization of payment in the United States.

Many merchants operating with a payday loan merchant account from eMerchantBroker lament the settling and clearance process which can take up to two days to process. The US transaction networks are woefully behind the times especially when compared to countries like the UK where payment is processed in almost real-time. While real-time payment processing may be far-off from where the Federal Reserve is now in terms of planning, merchants and the payment industry as a whole are hopeful for same-day settling in the near future.

The biggest challenge facing the Fed is to make a unified system which operates for thousands upon thousands of interested payment parties without fragmenting the system. There is a common need and a common goal, yet the process of achieving efficient results is hardly agreed upon within the industry. As a result, the Fed has called for task forces comprised of payment industry executives to formulate a cohesive plan to speed up and modernize the US transaction networks. Critics have claimed the task forces will be largely ineffective due to practical objectives.

EMB’s payday loan merchant accounts would surely benefit from a faster transaction network as would nearly all payment processors. The Fed’s plan is a step in the right direction, but time will tell whether it results in decisive and deliberate action. The payment industry wants a faster processing system, but the task of creating such a network is monumental considering all of the interested parties. Yet, the new blueprint released by the Fed is a positive sign that the US financial networks are moving towards real-time payments.

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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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