What you need to know about High Risk Credit Card Processing

Nov 12, 2013
Credit Card

Although you may not be able to get a traditional merchant account because of your high risk status, if you seek out the high risk teams, they can help you all the way. Check out their live chat and talk to a representative. Ask all the questions you need answered before you decide you want to take out a merchant account. Just know, you can’t process the debit and credit cards without that account, and it will cripple your business.

High risk credit card processing is not for the faint of heart. You really do want the specialists in this department. They have the knowledge and the experience to get you your merchant account. They have offshore banks that you may need to utilize and with their expertise, you can be guided to the best package for your business.

Know this

Since you are a high risk, you will pay a little extra for the merchant account services, but if you keep your nose clean and work diligently with your account, then there is no reason not to negotiate those terms down the road. Nothing on the planet is forever, and if you have run a clean processing business, with few chargebacks, then you should be able to talk with your processor and get your rates lowered.

Another thing

As a new customer you will have a trial period to work through. Depending on their terms, it could be three months to a year. As you work through the trial period, you will have a reserve account set aside for you. Some will have a rolling reserve and others will keep the whole amount in the account until your time is up.

A rolling reserve will give you back your money a month after it has been made. The other one will give you your money at the end of the trial time in one lump sum. Be sure to know which one you will be dealing with, so that you are prepared financially for the shortfall.

Why are they keeping my money?

They don’t want to pay for your chargebacks themselves. A chargeback is a fancy way of saying ‘refund’. A merchant account servicer is responsible for the refund if you can’t do it. So, before it becomes a cardholder’s banks responsibility to contact you, have some sort of store policy to deal with refunds. And when you get a letter for a refund, take care of it right now. Don’t wait. If you leave it, and forget, you could lose your merchant account.

Too many things

As a beginner to the merchant account area, take the time to get to know how things are done. Know what the penalties are and learn how to deal with difficult things. The more you know, the better you can deal with your account. It can only help you in the end. Knowing how to operate within the rules makes it so much easier on all concerned.

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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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