Which Major Credit Cards Should Your Business Process?

Oct 26, 2016

The credit card industry is booming in the United States, but is only dominated by a handful of companies. As of mid-2016, American consumers were approaching $1 trillion in credit card debt. The top 10 credit card issuers issued almost 90 percent of all credit cards given to consumers in the U.S. General Purpose credit card spending has grown by 5 percent in the past 14 years.  The following is a snapshot at how the four major credit card networks in the U.S. are impacting the market.

The four major credit card players United States are Visa, MasterCard, American Express and Discover. Visa leads the way, with credit purchase volume at $1.2 trillion in 2014. MasterCard’s U.S. credit purchase volume was about $607 billion the same year. American Express spent over $668 billion in 2014. Lastly, in 2014 Discover had a credit purchase volume of $129 billion.

One would think that the last Great Recession, would make credit card issuers be more discerning as to who receives a credit card, and for banks to tighten their lending standards. But according to Equifax, the evidence is mixed as to whether or not credit card issuers or banks are giving more or less credit to applicants.

The Future of Cards

Any data that may indicate a decline in credit card usage or a slowing down of usage may be explained by security concerns. Security is one major threat that continues to impact credit card circulation. According to The Nilson Report, card fraud losses were $16.31 billion in the U.S. in 2014. Currently, U.S. card issuers are upgrading approximately 1.2 billion credit and debit cards to include smart chips. The nation’s switch to EMV payment technology is expected to drastically reduce instances of fraud.

eMerchantbroker.com is the leading online payment processor that provides services for high risk merchant accounts, including credit card processing for all major credit card issuers. EMB has Payment Gateways, Business Funding, Check Processing solutions, and POS Solutions, along with a full support platform that make high merchant accounts grow and experience higher profits.

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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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