Jun 16, 2014

Why Banks Break Up With High Risk Merchants

break-up-with-your-clientSo, you just got that dreaded letter through the mail that states your bank has closed your account. If this comes as a surprise, and you are a high risk merchant, you are not alone. Banks are closing or putting a “hold” on business accounts linked to high risk merchants, for fear that they are participating in fraudulent acts. While this seems like the end of the road for your business, there is a high risk merchant account provider that you should know about, that caters strictly to high risk merchant accounts.

Chase Bank has begun a hard crackdown on those business and personal accounts of those who they consider to be “high risk”. There has been a big influx of current and former adult film actors who had their accounts closed by Chase, only to be notified by a letter in the mail. While this seem unscrupulous, it is legal, and banks are becoming more and more cautious of the types of accounts that they accept. These high risks accounts are labeled so, because they have a higher risk of fraudulent activity than other accounts. While porn actor personal checking accounts may not have suspicious activity, their business accounts may, especially if they are paid often online, which is what happens when someone operates a pornographic pay per view website.

High risks businesses need to forgo the traditional bank option and look for a high risk merchant account processor, such as eMerchantBroker.com. eMerchantBroker.com (EMB) specializes in high risk merchant accounts, and aims to provide the best service, security, and terminals for their businesses. While many say that they specialize in high risk accounts, they offset your “high risk” status by charging you outrageous fees. Not with EMB. We believe that your business deserves the same treatment as every other business. It is free to apply for an account, and many times you can be approved within 24 hours.

Banks are throwing out high risk accounts, even those that are not business accounts. For your high risk business you need a merchant account processor that specializes in high risk accounts, and knows that they operate differently than traditional businesses.

Contact us today to set up your high risk merchant account

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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 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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