The Current State Of Credit Card Processing And What To Expect in The Future

Dec 19, 2016

According to BI Intelligence, Business Insider’s premium research service, the online processing market in the US will count for about $10.7 billion in 2016. With online shopping becoming more popular, this number is expected to reach $17.5 billion in 2020.

Credit Card Processing Methods in the Present

Below you can find the current methods of credit card processing:

Credit Card Swipers or ReadersThese small electronic devices allow for reading the account information embedded inside the magnetic stripe of cards. This type of payment processing is usually used to make in-person transactions.

EMV Chip Readers – EMV (Europay, MasterCard, and Visa) standard is designed to increase the security of physical credit card payments. A chip is embedded into customers’ cards to provide additional verification and security.

Mobile Payment Processing – Thanks to mobile POS devices, merchants can leave their brick-and-mortar stores and complete transactions at food trucks, farmer’s markets, sporting events, inside a customer’s home, and more.

Payment Gateway – The first step in the online payment process is associated with payment gateways. They help eCommerce companies accept online transactions, and can be viewed as online versions of payment terminals and front-end processors for online and mobile sellers.

Point-of-sale (POS) Credit Card Processing – Refers to any terminal that customers can use to make a payment via credit cards. This type of credit card processing has to do with traditional retail and countertop card machines.

Virtual Terminals – Are of special importance for small businesses, mail-order telephone merchants, and workers from home. No expensive hardware or software is required for transaction processing.

Credit Card Processing in the Future

The future of credit card processing is associated with speed and efficiency. According to the Huffington Post, 25% of organizations stopped accepting cash in 2015. Given more people are choosing to electronically manage their finances, more companies will stop accepting cash.

To open a reliable and secure merchant account, turn to EMB is the #1 high risk processor in the US and boasts and A+ rating with the BBB. EMB is one of Inc 500’s Fastest Growing Companies of 2016 and is rated “A” by Card Payment Options.

Payment processing is going to be based on mobile payments in the future. Shoppers will prefer Android Pay, Apple Pay, Chase Pay, Kohl’s Pay, Microsoft Wallet, Samsung Pay, Walmart Pay, and more.

According to BI Intelligence, mobile payments will grow slower than expected. However, the volume will account for $503 billion by 2020, which is up $75 billion in 2016. More than half of the US population will try to use a mobile wallet by 2020.


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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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