Visa Reduces Rules and Fees for Merchant Acquirers

May 15, 2014

In spite of turbulence in Russia affecting Visa’s international transaction networks, Visa is lowering the fees and pruning requirements for merchant acquirers. The cutback of rates could be up to as much as 50%. These new policies from Visa come in the wake of the credit giant’s push for industry cooperation for security and the coming switch to EMV technology.

The EMV technology will give a dramatic boost to card security while eliminating the classic magnetic strip for credit and debit cards. The system, already in place in Europe, is scheduled to be implemented in the United States within the next year. Some credit card holders are already being asked to prepare to change credit cards as soon as August 2014.

Visa and MasterCard have both spearheaded an effort to cooperate with the electronic payments industry as a whole in the wake of high-profile security breaches jeopardizing customer credit card information.

Increased transparency and collaboration will help to reduce security concerns in an industry that has been caught in poor light following hackers breaking into Target, Michael’s, Smucker’s, and other large retailer databases.

Visa changes come at a difficult time for the company. Political unrest over the situation in Ukraine has led to the United States implementing economic sanctions against Russia following its annexation of Crimea. These sanctions have forced Visa to refuse transactions to two of their banking partners in Russia with the possibility of more being added to that list.

In response, Russia has put wheels on its plan to create an electronic payment network under the Central Bank of Russia. The existence of such a network would put Visa, as a foreign company, at a severe competitive disadvantage.

The setbacks in Russia, however, are set off by gains in Japan as Visa has acquired the majority shares of the Japanese GP Network Corp in addition to Total Systems Services Inc.

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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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