Archive for the ‘EMB’ Category

Customers increasingly prefer card money to cash for various transactions. While businesses strive to let their customers transact conveniently using their debit and credit cards, banks increasingly classify a lot of these businesses as “high risk”, depending on size and industry, making it hard for them to access credit card processing accountservices.

Fortunately, alternative payment processors like EMB are stepping in to provide the so called high risk businesses with the services they are unable to obtain from traditional banks and other main stream payment processors. It’s important to understand whether your business would be considered high risk so that you may make informed choices regarding where to set up an account. The objective for the business here is not only to land an account, it’s more importantly to access better services and navigate with ease the high risk merchant account market.

But first…

What is a merchant account?

It is a type of bank account that a business uses to accept payments via credit or debit cards. The account is established purely for purposes of settling credit or debit card transactions. The agreement can be between a bank and the acceptor or an acceptor and a payment processing firm. Fees charged on a merchant account often includes both bank levies and the credit card network charges.

High risk merchant accounts defined

Merchant accounts to businesses that are predisposed to greater chances of chargebacks are considered high risk. Payment processors often assign high risk merchant accounts to the businesses they deem to havea higher risk of chargebacks.Fraudulent activity such as unsanctioned use of a consumer’s credit or debit card to make purchases is the most common cause of chargebacks.

Normally, the merchant’s processing bank is fully liable for all transactions that the business performs depending on the agreements they reach with credit card companies. That means that in the event of a chargeback, the processing bank is held accountable for offsetting the chargeback.

That’s why unlike merchant account service providers that specialize on high risk merchant accounts, traditional banks typically levy prohibitive charges for any merchant accounts that they consider to be high risk.

A specialist merchant account service provider however has mechanisms designed to maneuver the risks associated with such accounts. As such, they often provide the accounts at very relaxed and friendly fees. This is why you should be sure to assess whether your business is high risk, in which case it would be most advisable to open a high risk merchant accountwith a platform like which specializes in providing such services.