What is high risk credit card processing?

Oct 07, 2013

When you are ready to process the credit cards for your business, you will be sent looking for a merchant account through a merchant account servicer. The search won’t be hard, for the market has grown large over the last ten years or so. As quick as a blink of an eye, you can have a whole page of servicers in front of you. The best you can do for yourself and your business is to look at each one and find the one that best suits your needs.

As for high-risk credit card processing, here is the definition. Every one of the merchants worldwide must have a way to process their cards. Each is determined by the number of credit cards they process and the kind of purchases that are made, and lastly, how many chargebacks are going to happen. The customer has six months to ask for a refund, and in that time, so do a lot of other customers. If you are in a business that tends to have a large number of chargebacks, then you likely will fall into the high-risk category.

Do not despair

A large number of our day-to-day services fall into that very spot. Our airlines, the movie theater, the travel agency, the pharmacist, and of course the ones we expect, the adult websites, so don’t be afraid of being in the high-risk area. It only means that you are in a business with a high amount of refunds. The best thing to do is take care of the customers and they will take care of you.

For the next few months

Now that you have your high-risk credit card processing in place, the merchant will likely have a holdback account for you. This means they will put a certain amount of your card percentage placed into an escrow account for three to six months. After the trial period is over, you will get all your money back. It will be deposited directly into your account at once and you can move on with your business.

But be prepared

During your trial period, you need to be prepared. As your income arrives from your credit card purchases, that percentage will not be available to you, and you may have a shortage of your income. Be prepared to keep the apron strings pulled tight while this goes on. You don’t want this to be a reason to fail. Be prepared for this and you should do well.

You are on your way

Now that you are on your way, you have no excuse. Your business is ready to rock and roll and begin accepting credit cards. You found the merchant servicer that will do you the most good, and you know what to expect. Your steps are molded and you have a lucrative business to go run. Take advantage of this information and go grow a wonderful reputation and make lots of income. Good luck to you!

Let us help you get a high risk merchant account today!

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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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