US-Based Card Companies are Headed to China

Aug 26, 2015

American Express, MasterCard, and Visa are hitting the road to China. The country has finally allowed these cards to be processed in their country. While tourists and foreigners could previously use their AmEx, MasterCard, and Visa in the country, there was an added processing fee that was charged to merchants. Because of this new ruling, the extra fees are no more, and US-based merchants can now expand their businesses to China, if they choose. The Earth’s most populous country could soon become your next customer base.

While many complain about the WTO, or World Trade Organization, they can thank them for this ruling. Back in 2012, they ruled that UnionPay, China’s co-brand of their Visa and MasterCard, had created a monopoly in the card and processing industry. Because of this ruling, AmEx, MasterCard, and Visa can make a pretty penny with the revenue from their processing fees. While US-based card company fees are typically not high, they are how card companies make their money. With over one billion people and growing in China, these fees are going to quickly add up.

While this is great for the card companies, it is also great for those wanting to do business in China. As with any business, you need to make sure that you have an appropriate merchant account. For this, you should search for a high risk merchant account, because this is risky. There is always a chance of business failure and of hackings, but this market is not heavily tested, and it can make many merchant account processors iffy about doing business in the country. This is natural, as any new venture is scary. However, there are options available for you.

While many high risk merchant account providers exist, not all are capable of dealing with the turbulent waters which can come from one fraudulent issue. The fees involved can cripple any business, and you need to make sure that your processor knows that this is simply part of the industry, and it isn’t a reason to drop your account. Sadly it happens far too often, and it is bound to happen with the new China ruling.

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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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