Online furniture merchant accounts

If you’re new to the industry, it might come as a surprise that selling furniture online is considered high-risk. Most times, the reason why online furniture businesses are viewed this way is simple, chargebacks. The furniture industry features a large number of chargebacks. One reason for this is the time between when the customer orders the product and when the product is delivered. Changes of heart (among other changes) often occur during this wait. This is a common occurrence. Given that processors view a high chargeback ratio as a red flag, they commonly label furniture businesses as high-risk. If you’re an online furniture merchant that’s been labeled high-risk, you need a company like EMB.

If you’re an online furniture seller approved for a merchant account, you can anticipate credit card processors to place certain terms within their own agreements as a form of defense. This will often include a rolling reserve. A credit card processor withholds a proportion of your sales for an established period, this money is then withheld to cover any potential losses that your business might face due to chargebacks. Rolling reserves protect the processor and merchant.

Merchant accounts can accept all major credit cards. This means with a merchant account, you will be able to accept ATM debit cards, Mastercard, and Visa among others.

Yes, at EMB, we can establish a payment gateway provided you have received approval for processing.

The four-digit Standard Industrial Classification (SIC) codes can be found throughout the U.S. as well as many other countries. These codes help to identify the primary purpose of businesses. If you’re a merchant in the e-commerce furniture industry, you’ll represent one of the following SIC Categories: Home Furnishing (5023), Durable Goods, not elsewhere classified (5099), and Furniture Stories (5712). A complete SIC list can be found on the Department of Labor’s website.

Similar to SIC, the NAICS (Northern American Classification System) is a six-digit code used to classify businesses in North America. Online furniture sellers fall into one of these few categories: Furniture Stories (4442110), Home Furnishings (423220), and All Other Home Furnishings (442299). The NAICS list can be found on the U.S. Census Bureau’s website.

Load balancing is a payment gateway feature that automatically divides your transactions into multiple merchant accounts. This lets credit card processing to occur over multiple merchant accounts without required manual changes. This might be a good idea if you are a high-risk or high-volume furniture seller to process total credit card processing volumes.

For merchants with previous credit card processing history, banks almost always require a chargeback ratio below 2%. Certain extenuating circumstances can lead to some merchants having higher chargeback ratios.