Visa Wins Costco Contract over AMEX

May 26, 2015

American Express was Costco’s processing standby for years, and now it’s switched to the more appealing Visa/Citi. This isn’t a quick transition, as the new deal takes effect in April 2016. While it’s nearly a year away, merchants and customers should pay attention to this deal. Many in the industry blame backdoor business tactics for the switch, while Costco and Visa/Citi both deny. Regardless, this new changeover could bring forth issues with the new processing scheme.

Not all PIN processors are created equal, and with changes come issues. Fraudulent claims and hackings are on the rise everywhere, and it is not only up to merchants to keep their customers information safe. While Visa/Citi is a big name, and a reputable processor, merchants need to pay attention to what happens next. Costco is a multi-billion dollar business, and thanks to 2013’s mass hackings at Target, TJ Maxx, and Panda Express among others, any little glitch can wreak havoc for millions of customers. Even so, all merchants need to make sure that their high risk credit card processing accounts are adequately secure. This means that you need to check with your processor, and there will be cases where merchants need to switch.

While the thought of switching to a new high risk credit card processing account can be horrifying, it can be easy if you choose the right processor. While some leave you in the dark about a new account for weeks, others, like EMB, can let you know in just a few business days. High risk credit card processing accounts are tough to find, so when you can switch to a reputable company effortlessly, you should consider it.

High risk credit card processing accounts can be finicky, and usually come with sky-high processing rates. These high rates are not feasible for any high risk business, and yet the majority of processors still charge them. You need to make sure that whichever high risk credit card processing account you possess charges fair rates, and work with you to make your company the best that it can be.

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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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