Young Adults Decide to Skip Debit Cards Taking the High Risk Credit Card Processor Road

Feb 20, 2016

According to the “Consumers and Debit in the U.S.: Heightened Security Concerns,” report, high earners and young adults have one thing in common – a lower than average use of debit cards. The report canvased about 3,000 U.S. adults about their debit card use. For households that earn over $100,000, only 52 percent use debit cards and only 56 percent of young adults use debit cards. Both of these are below the national average of 59 percent.

In the wake of the nation’s debit card breaches, consumers have become more concerned about the security of debit cards. Currently, about 42 percent of all consumers are looking into mobile controls for their debit cards. These controls allow customers to suspend debit cards of a specific period of time if they are lost or stolen. This number jumps to 55 percent in the 18-to-34 age range. Security experts believe younger consumers prefer mobile controls because of a greater reliance on mobile devices and online commerce in general. Young adults in particular are used to shopping with their phones and paying with them as well.

The “Consumers and Debit in the U.S.: Heightened Security Concerns,” concludes that credit card issuers who are concerned with the decline in debit card use, should increase mobile-based account controls. The perception of increased security controls could reinvigorate debit card use. Data procured in the study indicates that security concerns are the leading reason why young adults and high earners are not using debit cards. Both groups are so concerned, that they are even willing to pay for more security. The report showed that over half of respondents would be willing to pay for only a few enhanced security features.

Merchants interested in acquiring more customers must have the payment processing equipment to utilize new chip enabled credit and debit cards. In addition, they should investigate mobile payment processing options. EMB is one of the nation’s leading online payment processor. We provide processing solutions for every type of payment. We are your number one high risk credit card processor. If your business has been classified as “high risk,” consider us to manage your merchant account. Contact us now to learn more about our low cost, low hassle, payment processing.

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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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