How the process works for high risk merchants

High risk means riskier business

Chargebacks are a major concern for High Risk merchants, and is one of the main factors in lowered approval ratings. We’ve teamed with Ethoca and Verifi to make Chargebacks a thing of the past.

Verifi

Verifi reduces merchant risk by improving Chargeback prevention, and combating fraud without affecting customers and sales. Merchants can focus on profits, rather than fighting to attain their hard-earned revenue.

Chargeback Protection

Chargebacks begin when a customer files a dispute with their bank regarding a credit or debit card transaction. Merchants are often left out of the dispute process. Customers are informing the merchant of disputes at an increasing rate. And in 58% of instances, the merchant is never notified, making them defenceless against the charge back.

The real cost of Chargebacks

Any time a customer calls up his credit card company and complains about a charge, retailers, their credit card processors and their sponsors pay. The cold, hard numbers speak for themselves.

U.S. merchants that accept credit and debit card payments via in-store, e-commerce, mail order or telephone purchases lost 1.32% of revenue to fraud, according to the Lexis Nexis Risk Solutions True Cost Of Fraud Study released in 2015. Not only was the first year that merchants that did not handle any face-to-face transactions saw losses of more than 1%, but this was a 94% increase from the past 12 months.

The study also showed that large e-commerce business spend more than $115,000 annually for fraud protection, and still lost 1.39% of revenues to fraud. These figures to account to the losses of merchandise and acquisition costs. This reinforces the idea that fraud is rampant but that merchants want to succeed must have solid Chargeback solution in place. Merchants that fail to take Chargeback protein seriously will succumb to cost increases, revenue losses, and business reputations that possibly cannot be saved.

Maintain Merchant Accounts with Chargeback Protection

Any merchant that handles credit card transactions are faced with chargebacks. A chargeback is when a credit card brand, such as MasterCard, demands a merchant pay for any disputed or fraudulent transactions. Chargebacks are triggered when a customer reverses an order due to a legitimate complaint, such as not receiving an item as it was marketed, or because they changed their minds about purchases. No matter what the reasons, excessive chargebacks are bad for business.

Once upon a time, chargebacks were set up to protect patrons from unscrupulous merchants. Instead of arguing about unauthorized changes, consumers could not initiate a chargeback and move on without further hassles. Unfortunately, this has led to customers abusing this practice, initiating chargebacks whenever they feel like it.

When merchants rack up excessive chargebacks, it not only cuts into their bottom lines, it puts their merchant accounts in jeopardy. High-risk merchants especially must be mindful of chargebacks. Businesses that can’t keep chargeback ratios below 2% can have their accounts terminated by processors. Businesses must have merchant accounts if they want to continue accepting credit and debit card payments. Merchants, specifically those that operate mostly online and rely on credit card payments, must do whatever they cna to protect their accounts. Taking chargeback protection measures, such as implementing a mitigation system, is necessary to keep businesses fully operational.

Businesses that want to safely and securely accept electronic payments should turn to a credit card processor that specializes in high risk merchant accounts. Payprotec Southeast has partnered with banks that specialize in the high-risk arena. We tailor payment processing solutions to meet every merchant’s needs while helping them with practical advice concerning chargeback protection. Payprotec Southeast specializes in providing merchant account services for old and new businesses of all sizes, including high-risk merchants.

Fill out our application today and get approved for a merchant account within 24 and 48 hours.

Types of businesses most vulnerable to chargebacks

Any business that takes a credit or debit card can end up with a chargeback. However, there are some businesses, many of which are deemed high-risk by traditional financial institutions, that are more prone to excessive chargebacks.

The following businesses that sell these products or services face more chargebacks:

• Adult entertainment and novelties

• Auto accessories and parts

• Cigarettes, cigars, pipes, and smoking accessories

• Collectibles and antiques

• Credit repair

• Debt consolidation

• Designer fashions

• Downloadable and mobile app software

• E-cigarettes

• Educational seminars

• Electronics

• Firearms

• Furniture

• Gaming

• Jewelry

• Luxury goods and services, such as private planes and travel

• Magazine subscriptions

• MLM and direct sales

• Moving companies

• Nutraceuticals

• Penny Auctions

• Precious metals and coins

• Sports betting

• Tech support

• Tickets for flights, concerts, excursions

• Vaping

• Water purifiers

  Reason codes for chargebacks

  Though it is easy for consumers to initiate a chargeback, when they do so, they must provide a reason to credit card companies. Chargebacks can only be processes when they are given one of four reason codes.

  The codes are:

• Technical

• Clerical

• Quality

• Fraud

  Expired card authorizations, insufficient funds, or bank processing errors fall under the technical code. Duplicate billing, inaccurate charges, or a failure to issue a promised refund are considered clerical chargebacks. Quality chargebacks are when a customer received defective items, merchandise was received later than promised, or never at all. Finally, fraud is when a purchase was made with a stolen credit card or there was identity theft.

  The most common reason for chargeback is fraud or friendly fraud, which is when customers claim items were not received or damaged but they really want to get away without paying. In a majority of the cases, credit card companies side with customers and the charges are removed from their accounts regardless of the situations.

  Calculating a merchant’s chargeback ratio

  A members chargeback ratio is calculated by the number of chargebacks divided by its number of monthly transactions. For example, a merchant with 100 transactions and four chargebacks in a month would have a 4% chargeback ratio. The actual dollar amount of chargeback does not matter to credit card companies of processors.

  Credit card processors foot the bill for too many chargebacks

  When merchants have excessive chargeback ratios, credit card processors may be subject to thousands of dollars in fees for each merchant account. Whenever a business exceeds 2% chargeback ratio, credit card companies, such as MasterCard and Visa, can fine the processor that provided the merchant account.

  This not only cuts into the profits of credit card processors but it puts their relationships with the sponsor banks in jeopardy. Credit card processors terminate high-risk merchant accounts with chargeback ratios of more than 3%. If a merchant has 200 transactions and eight chargebacks a month, the business has a 4% chargeback. With such small margins for error, merchants must not only try to keep their transactions volumes high they need to do whatever they can to avoid chargebacks.

  How do chargebacks work?

  Chargebacks begin when a customer files a dispute with their bank regarding a credit or debit card transaction. The problem arises when the merchant is left out of the dispute process or is informed too late. Customers are not informing the merchant of the dispute at an increasing rate. And in 58% of all instances, the merchant is never notified of the pending dispute, making them helpless and unable to defend themselves against the initial chargeback.

  Understanding chargeback thresholds

  A chargeback threshold is either the percentage in dollars or the number of sales that may be paid by customers before a merchant account becomes in danger of being terminated. The threshold is typically about 1% for U.S. high-risk merchant accounts and to between 3 and 10% for those based offshores. Since sponsor banks set the thresholds, they are different for each merchant account.

  Chargeback protection - ways to fight disputes

  With so much to lose, merchants need to be vigilant about preventing chargebacks. Evidence is a key to chargeback protection. Documentation of a transaction is one of the best ways to make it more difficult for customers to dispute a charge. Having copies of printed or emailed receipts can help prove customers authorized changes. Initially, customers may get their money refunded via a chargeback. but it can be reversed if a merchant can prove to credit card companies during the investigation period that a disputed purchase was processed properly. Also, it is important to ensure the number on the computer screen matches the ne on the credit card during checkout.

  Some chargebacks are initiated because customers fail to remember or recognize transactions when they review the credit card statements. Sending an electronic receipt with the merchant’s contact information, such as email and billing support phone number, also helps customers remember.

  Customer service is probably the number one way to afford chargeback protection to merchants. Customers who feel they received a positive resolution and extraordinary customer service are less likely to request refunds or dispute charges. When a refund is requested, a savvy, professional customer service representative can skillfully diffuse a situation and save a business a costly chargeback. Having 24-hour customer service support is a real benefit. If a customer can live chat with a representative, the employee could offer full refund or come up with another solution that prevents the person from disputing a charge.

  The best approach to chargebacks may be to have a strategy that focuses on gathering evidence of transactions, as well as stellar customer service. When people make purchases, make sure there are clear messages on websites that note security measures are taken to protect merchants and customers.

  Shave ratios with a chargeback protection program

  Since processors can terminate merchant accounts that don’t maintain chargeback ratios below 2%, businesses are hurting themselves if they don’t work to prevent chargebacks. A quick way to cut chargebacks by 25% is to use a mitigation program, like the one offered by EMB. Using the program, a merchant can prevent three out of every 12 potential chargebacks.

  EMB’s program is ideal for all merchants, including high risk businesses. EMB partnered with Verifi and its new Cardholder Dispute Resolution Network (CDRN) and Ethoca’s alert system to create a system that really works. What’s unique about the program is that CDRN works with card issues and banks, which allows businesses to resolve credit card transaction disputes directly. Implementing the system allows merchants to achieve the highest rates of chargeback resolutions in the most efficient ways.

  EMB not only provides chargeback mitigation tools and fraud protection, it prides itself on making the merchant account process simple. After filling out EMB’s quick online application, merchants need to provide some standard paperwork to underwriters and processors for review.

  Fill out the application and submit the below documents to processors:

• A valid, government-issued ID, such as a driver’s license or passport

• A bank letter or a pre-printed voided check

• A secure, working website

• Three months of the most recent bank statements

• Three months of the most recent processing statements, if applicable

• A SSN (Social Security Number) or EIN (Employer Identification Number)

• A chargeback ratio below 2%

  An approval can never be guaranteed, but PayProTec Southeast does promise a fast, streamlined application process. In addition, EMB works with new and existing businesses, merchants rejected or terminated by another credit card processor, as well as those with bad or no credit or a history of excessive chargebacks.

  Eligible merchants can get approved in 24 to 48 hours and then, also have access to EMB’s chargeback mitigation system, as well as its other personalized merchant account services.

  Chargebacks can be discouraging

  Fight back

  Chargebacks pose a real threat to business owners, and can quickly eat away at your wallet

  Get notifications

  Get notified of Chargebacks immediately, and become proactive in the process

  Retain profits

  Keep the money you earned, and put more of it back in your bank account,, with our help

  Partner up

  We want to help you battle Chargebacks’ you don’t have to fight alone

  The Chargeback problem

  Chargebacks amount to nearly $1 Million dollars annually. That’s money that’s coming out of the merchant’s pockets.

  Chargebacks will affect you

  Whether you realize it or not, chargebacks are hurting your business’ revenue stream, absorbing valuable time and effort by you and your employees. Chargebacks can create up to 270% of lost money on a chargeback. This means if your business suffers a $100 chargeback you may wind up paying $270 in fees.

  It’s time to stop the Chargeback cycle

  We can help you take control, and get back to what’s important in life. With Verifi and Ethoca, PayProTec Southeast has created an alert and prevention system that is practically unmatched by our competitors.

  How our system works

  electronic payment processing allows merchants to go global, but there are some caveats. One of the risks in chargebacks. EMB has partnered with Verifi and their new Cardholder Dispute Resolution Network (CDRN), as well as Ethoca’s alert system. By networking with both baniks and card issuers, the CDRN is giving merchants direct control over resolving credit transaction disputes. By offering our merchants both chargeback resolution networks, they can achieve the highest rate of chargeback resolution.

  The CDRN empowers you

  Once the CDRN is involved they inform you, the merchant, immediately regarding the dispute. The merchant will receive the request and can then choose whether or not the dispute should be refunded or declined. This is the pivotal step allowing your business and your transactions to come back within the refunded or declined. This is the pivotal step allowing your business and your transactions to come back within the realm of your control.

  Still deciding?

  Let our experience help you. Give us a call, or email us, and we’ll get in touch with you to provide more info. Don’t be afraid to contact us, anytime day or night; we love to hear from our customers, and we love getting them pointed in the right direction.

  We are a full service provider

  We do everything we can to stay ahead of our competitors, including offering the most aggressive pricing, the best services, and the best support and customer experience in the business. Our merchants are our top priority.

  Merchant accounts

  Get approved and get started today.

  Trusted, top-notch merchant account services

  Whether a business sells designer shoes or downloads of digital music singles, merchants are going to need merchant account services. Any business that wants to accept credit or debit card payments from customers must have a valid, secure merchant account. This type of financial account, which allows money to be transferred from card issuing banks to merchants’ business bank accounts, is a must-have for businesses that work exclusively online.

  Banks, merchant account providers, and credit card processors offer merchant account services, which allow businesses to accept credit and debit cards, contactless payments, and online transactions. Without these accounts, merchants cannot accept Visa, MasterCard, American Express, or other bank cards as payment.

  Though it seems simple enough to apply to a bank for an account, there is a major problem. That is that a business can have a processing record and still get turned down due to the nature of their business and a number of other reasons. There are host of businesses that banks consider high-risk. Businesses that handle mostly online transactions, have a history of high-chargebacks, irregular high-ticket sales, unusually large volumes of transactions, and highly regulated industries, such as cigarette businesses, run into problems when they seek merchant account services because they are considered too risky. Businesses owned by people with poor or low credit scores and those that are based offshore also fall into the high-risk category. So, when a merchant with any of these strikes against them apply for merchant account services, a bank turns them away.

  Merchants that want to safely and responsibly process credit card payments must turn to a credit card processor, like PayProTec SouthEast for merchant account services. Retail, mail order/telephone order (MOTO), internet, and accounts for high-risk businesses are just some of the merchant account services offered by PayProTec Southeast.

  In addition to offering dependable, affordable, and secure credit card processing, PayProTec Southeast offers ACH processing, secure payment gateways, integrated fraud protection and chargeback mitigation programs.

  PayProTec Southeast knows that the credit processing industry is confusing and overwhelming. The staff at PayProTec Southeast tries to take the guesswork out of obtaining merchant account services by providing up-to-date information about updating and managing accounts, as well as ways to succeed when accepting debit and credit card payments.

  Begin by filling out PayProTec’ quick and easy online application. There are no guarantees, but PayProTec promises an open and honest application process. Merchants can be approved in as little as 24 hours.

  Merchant account services for high-risk industries

  PayProTec specializes in providing merchant account services for old and new businesses of all sizes, including high-risk merchants.

  Get a merchant account from PayProTec for high-risk businesses that sell the following products and services:

• Adult entertainment and novelties

• Auto accessories and parts

• Cigarettes, cigars, pipes, and smoking accessories

• Collectibles and antiques

• Credit repair

• Debt consolidation

• Designer fashions

• Downloadable and mobile app software

• E-cigarettes

• Educational seminars

• Electronics

• Firearms

• Furniture

• Gaming

• Jewelry

• Luxury goods and services, such as private planes and travel

• Magazine subscriptions

• MLM and direct sales

• Moving companies

• Nutraceuticals

• Penny Auctions

• Precious metals and coins

• Sports betting

• Tech support

• Tickets for flights, concerts, excursions

• Vaping

• Water purifiers

  Merchants that don’t see their products or services listed here should fill out an application to begin accepting credit card payments. In addition, we work with high-ticket and high-volume businesses, as well as those with bad credit and those on the MATCH or TMF list.

  What is MATCH

  Created and managed by MasterCard, MATCH is a blacklist that prevent merchants with excessive chargebacks and high-risk accounts from opening an account with another credit card processor. The list, which is used and shared by all credit card companies, is a database of information about business, their owners, and the reasons and/or codes for why they were placed on TMF. The goal of the database is to prevent other processors from granting merchant accounts to businesses that are bad risks for sponsor banks and processors. Acquiring banks can add or remove businesses from the database when they deem is necessary.

  Other cons of working with banks

  Banks may seem like the best place to apply for a merchant account. That’s not the case if you are a high-risk merchant. Before a merchant can apply to a bank, it must obtain a business licence. Most often, businesses that are deemed “high-risk” by banks will be denied and instead be referred to an acquiring partner. Merchants that follow through with the referral will essentially be working with the third party. Therefore, the relationship with the bank does not matter. Businesses that pursue this route likely will end up entering into an agreement that comes with a set price for payment processing, hardware, and software. Through the package is being sold as a bundle, each item is being provided by different companies. This not only muddies the waters, it likely require more time and effort to get all areas working seamlessly, and the overall costs will be more expensive. Also, it is important to ensure the third party permits all major credit card brands. If all cards are permitted, merchants may need to apply directly to each credit card brand.

  Also, merchants must ensure that processors are certified as PCI compliant. Merchants discovered to not be PCI compliant face hefty fees and fines. Finally, you need to get all the different pieces certified as PCI compliant. If you’re ever found not to be PCI compliant, you could be subject to heavy fees and fines.

  Questions to ask when obtaining merchant account services

  Before signing up for merchant account services, a business must ask about the details and fees associated with the agreement. Some good questions to ask during the process:

• For an average merchant, what are the monthly fees?

• How long are deposits held?

• What are some of the other fees charged?

• Are the gateway, authorization, chargeback, return, batch early termination, and point-of-sales software fees and what are they?

• Typically, what do those fees add up to each month?

• What are your customer service practices?

• How long does it take to get a representative to reply to questions and problems?

• What is the cost of buying out contracts?

• Finally, you need to ensure that your end-to-end payments system is PCI compliant. Again, not being PCI compliant means you could be subject to heavy fees and fines.

  What’s needed to get a merchant account

  PayProTec prides itself on making the merchant account process simple. After filling out PayProTec’ quick online application, merchants need to provide some standard paperwork to underwriters and processors for review.

  Along with an application, the documents below must be submitted to processors:

• A valid, government-issued ID, such as a driver’s license or passport

• A bank letter or a pre-printed voided check

• A secure, working website

• Three months of the most recent bank statements

• Three months of the most recent processing statements, if applicable

• A SSN (Social Security Number) or EIN (Employer Identification Number)

• A chargeback ratio below 2%

  PayProTec can’t make any guarantees, but, it does promise a fair process. Get started by applying today. Eligible merchants can get approved in 24 to 48 hours.

  What happens during the underwriting process

  When underwriters review applications for merchant account services, they want to find that businesses follow a solid business model. A business with a good foundation reduces the likelihood of potential chargebacks. A chargeback is when a credit-card brand, such as Visa or MasterCard, demands a retailer refund any money due to disputed or fraudulent transactions. Underwriters also check to ensure merchants are complying with any necessary rules and regulations.

  A merchant’s risk is determined by several factors, including:

• Credit scores

• Credit card processing history

• Bank statements

• Websites

  When reviewed, underwriters want to confirm that merchants have no negative bank account balances, outstanding bills, or previously terminated merchant accounts. A history of high chargeback ratios also increases a merchant’s risk, which increases the chances that a processor bank will be left paying for a merchant’s unpaid debts.

  During the review of their websites, underwriters want to see that they have secure (SSLs), as well as clear, prominently-displayed privacy and refund policies. Merchants that satisfy all debt, and, instead, have some savings are in better shape than merchant's that don’t. Most importantly, merchant accounts are more likely to get approved when the business stakeholder with the best credit history submits the application.

  Additionally, businesses that process a greater number of transactions should provide a greater number of providers with the most accurate estimates for transaction volumes during the application process. If a merchant account is approved, knowing the chances for higher volumes may prevent processors from becoming suspicious of transaction activity and quickly suspending or shutting down merchant accounts without notice.

  With a little preparation, businesses are more likely to get approved for merchant accounts without restrictions, such as caps on processing volumes and higher rolling reserves.

  Get higher processing volumes for merchant accounts

  It is not rare for new and high-risk businesses to get approved for merchant account services with monthly caps on credit card processing volumes. This means merchants are limited as to the number of credit card transactions they can accept each month. Once a merchant reaches that cap that month, merchants must stop accepting credit and debit cards for payments. This shuts down e-commerce businesses until the next month.

  Merchants that can prove they can operate with low chargeback ratios and no unpaid bills can get their caps lifted in as few as three months.

  Maintain healthy merchant accounts by preventing chargebacks

  Excessive chargebacks is a primary reason why merchants got denied accounts, lose accounts, or lose accounts, or lose their businesses. Since chargeback levels above 2% are enough for a processor to terminate a merchant account, businesses must do what they can to prevent them. There are several simple steps you can take to avoid incidents of chargeback disputes.

  Encourage customers to channel their complaints to merchants instead of contacting the issuing bank to request a chargeback. The best way to do this is to provide customers with all possible contact information and top-notch customer service. Also, merchants must make sure they have clear return and shipping policies and that customers understand them before completing a purchases.

  In addition to verifying a customer’s billing address and security code at time of purchase, make requesting of name of the issuing bank aa purchasing policy. Merchants will know something is not right if a customer doesn’t was to provide this information.

  It is always important to send confirmation emails following a purchase. Ideally, these emails should be automated and contain invoices. If the purchase is a product, another confirmation email should be sent with shipping and tracking information.

  Also, many online merchants use a different name for billing purposes then they do for promotional purposes. This is especially true in industries, such as adult entertainment, when merchants want to be as discreet as possible. Since this can lead to chargebacks because consumers don’t recognize the name on their credit card statements, businesses should ensure that customers know how the transactions will appear on bills. Merchants should use their names and clear billing descriptions on bills. Finally, it is a good rule of them to be extra cautious when a customer provides a shopping address that is different from a billing address.

  Merchant account services include payment processing for different kind of businesses, MOTO or mail order/telephone order, Internet, and high risk businesses among others. Without a merchant account, a business owner would not be able to accept Visa, MasterCard, American Express or any other popular card type.

  The payment processing industry is an extremely complicated, convoluted industry. Many companies provide the same services, and in some cases are both competition and partners. There are a lot of middlemen and resellers in the marketplace that tend to make things very confusing for the average merchants.

  WHY US?

  PayProTec Southeast is 100% committed to providing your merchant services, and offers Payment Gateway Solutions, Instant Check Processing, Business Funding, and much, much more. Our online application takes only minutes to complete.

  These are some frequently asked questions a PayProTec Southeast

• How long does it take to be approved?

• After we receive your executed agreement and all supporting documents have been provided we’ll have an answer within 2-3 business days.

• How do I determine if i’m a Domestic or International Merchant?

• If you are domiciled or have a U.S. Social Security number than you’re considered a Domestic Merchant, otherwise you are an International Merchant.

  More questions

  Feel free to give us a call. Seriously, we have live staff ready to assist you with any questions or concerns. It’s something we love to do, and we pride ourselves on our attention to each customer; it’s how we maintain our A+ Rating with the BBB.

  We understand you have specific requirements. If we have not answered all your questions here, give us a call or write us an email. We are happy to help. Or, you can start the application now!

  Consistently voted the best high risk provider by industry experts

  A PROVEN PLATFORM

  We have built a platform that works for you. We are continuing to add new features daily, and expanding to meet the needs and requests of our customers.

  SUPPORT SUPERIORITY

  We have some of the best support in the business. We can be reached anytime of day, and will help you through any hurdles you might encounter. Need help? Call us.

  QUICK AND PAINLESS

  Signing up is fast, easy, and secure. Our application process can be completed in just a few minutes, and you will hear back from us within 24-48 hours, sometimes sooner!

  APPLYING IS FAST AND EASY

  No matter your device, platform, product or service, applying is a painlessly quick experience and can be finished in minutes. So what are you waiting for? Stop delaying and start selling today!

  iCheck

  Immediate payments from check-based transactions.

  Get money faster with electronic check processing

  According to a 2017 Federal Reserve Payments Study, check payments have decreased 3% a year from 2012 to 2015. The estimated decline was 3.6% by number and 3.7% by value for 2016. Meanwhile, total card payment rose $103.5 billion with a value of $5.65 trillion in 2015 to 111.1 billion with the value of $5.98 trillion in 2016, according to the study.

  The numbers speak for themselves. Just like cash has become the less preferred way of paying for purchases, so have paper checks. Luckily, electronic checks have found their way into the mainstream, offering a payment option that satisfies consumers and businesses. Electronic checks work the same way as paper checks. Money is transferred from one entity to another but without any actual paper exchanging hands. Since no paper is involved, electronic check processing is faster and cheaper. Unlike with credit card payments, when shoppers use e-checks they aren’t subject to any additional fees and businesses don’t have to worry about costly chargebacks.

  Also, merchants can see funds from check sales immediately when they use iCheck, the electronic check processing service offered by eMerchantBroker.com (EMB). To begin taking advantage of this revolutionary service, fill out EMB’s simple, online application now.

  In addition to specializing in high-risk merchant accounts, EMB offers personalized payment solutions that allow new and established merchants to succeed. Applications are approved in 24 to 48 hours. Once approved, EMB can set up a payment gateway and fraud filters.

  EMB understands that merchant account services can be confusing and overwhelming, especially for newer businesses. The staff at EMB tries to take the guesswork out of obtaining services, including electronic check processing, by providing up-to-date information about payments solutions and using the most cutting-edge technology.

  How electronic check processing works

  A merchant needs only needs a computer, an internet connection, a check scanner, a merchant account, and a service provider, such as EMB, to begin accepting e-checks from customers.

  Electronic check processing allows people to electronically transfer funds from their bank accounts from anywhere. When a customer chooses to pay using an electronic check, they are required to enter their bank account and routing numbers. The payment gateway that the business uses transmits the encrypted information to an electronic check processing service, like the one offered by EMB. The electronic check processing provider uses fraud prevention tools to validate the customer’s identity and to determine the risk of the transaction. The customer must authorize a payment. This can be done through a recorded voice conversation, signing a contract, or accepting a site’s terms and conditions. The merchant is notified once a transaction is accepted or declined. If approved, the funds are sent to the merchant’s account.

  A remote deposit doesn’t require a person to take a physical check to a bank. For the check to be processed, a digital image of a check must be scanned into a computer and then transmitted to a bank. The Check Clearing for the 21st Century Act was passed in the United States in 2003 and took effect the next year, making remote deposits legal.

  The benefits of electronic check processing

  Electronic check processing is more convenient, offers greater availability, and decreases transportation costs and risk. Also, remote deposit offers features, such as the ability to feed internal systems, intelligent character and document recognition, and additional functionality.

  The speed of transactions is one of the major benefits of electronic check processing. Everything moves much quicker because it is done electronically. Merchants often see a real increase in sales when they start accepting e-checks because customers like to have a variety of options available to them.

  Customers also trust this type of payment more because there is less risk. Screening measures, like the verification of checking account details and reviewing the bad check database, are implemented, ensuring less fraud.

  Other benefits include:

  • Transactions don’t require consumer notification or receipts

  • No check writer authorization is required

  • Funding is guaranteed and deposits are made in as few as 24 hours

  • Transactions can be monitored online free of charge

  Also, since merchants are charged smaller fees to process e-checks than credit card payments, electronic check processing has become a popular payment type for high-tickets items, like jewelry and electronics, and services, such as fitness memberships, electronics.

  Finally, electronic check processing has fewer restrictions than the Automated Clearinghouse (ACH), which is the main network that processes most of the electronic transactions in the United States. ACH has no set-up fees and a low-cost payment process but the electronic transfer of funds takes up to seven days.

  Also, when using iCheck, checks can be accepted at Point of Sale (POS) or when the consumer is not present. With this service, different types of checks, including personal, business, and travelers, as well as money orders, are accepted and processed Additionally, iCheck allows users to send invoices through email and distribute funds directly from a bank account.

  Less Fraud with Electronic Check Processing

  Unlike with credit card transactions, merchants don’t need to worry about chargebacks or dealing with rampant fraud. Fraud and data theft prevention have come a long way since the early days of online fund transfers. Many of the improvements are due to advances in electronic encryption.

  Signing up with a payment gateway for payment validation and guarantee services, like the ones offered by EMB, can minimize or eliminate the risk of receiving fraudulent checks. Electronic check processing also is a win for customers. Since there is no exchange of paper checks and all of the work is done electronically, fewer people have access to customers’ sensitive information, like bank account information. This is much safer than using paper checks.

  Also, there is a measure in place that protect consumer when those few bad checks slip through the cracks. Customers are protected under Regulation E of the Electronic Fund Transfer Act, which requires banks to allow consumers to revoke payments they consider fraudulent. A consumer can revoke a payment within 60 days of the bank statement that showed the fraudulent charge.

  What to think about when choosing an electronic check processing system

  Selecting an electronic check processing system is not an easy decision that should be taken lightly. There are certain things merchants should consider before they leap into agreements with processor.

  Factors to consider:

  • The system a merchant ultimately chooses should not require pricey, upfront costs for hardware or software

  • Merchants should pay flat rates on electronic check transactions – businesses are entering into a bad agreement if they are required to percentage of the transaction to the processor

  • Customer information should be stored securely within the system to avoid duplicate data entry

  • A system should allow merchants to process both electronic checks, as well as direct debit card transactions

  • Robust, cutting-edge security and encryption tools must be a part of the electronic check processing system

  Most importantly, merchants need to know their budgets and whether the system selected fits into it. The system needs to match each merchant’s unique goals. Merchants should research monthly fees, transaction fees, and monthly minimums to ensure they are not going over budgets.

  With a little research and time, merchants will find that EMB offers everything a business needs to succeed.

  Businesses that can benefit from electronic check processing

  Electronic check processing is one of the best payment solutions for merchants that offer subscription services, charge retainer fees, or bill on a recurring basis. iCheck allows businesses to add “pay now” buttons to their websites, as well as email invoicing. Both of those features allow merchants to get their money faster.

  With the check-by-phone service, merchants are able to process checks over the phone. Another important feature that EMB offers is a paper guarantee. This means businesses can continue to accept and process paper checks without taking on any extra risk.  This feature includes verification at the time of the sale to help prevent fraud.

  Electronic check processing is especially great for businesses that offers services, such as:

  • Legal advice and litigation

  • Debt collection

  • Credit repair

  • Weight loss and fitness consulting or coaching

  • Insurance policies

  • Phone and wireless

  • Utilities

  • Magazines

  • Educational seminars and online courses

  • Downloadable and mobile app software

  Though service-related businesses find electronic checking processing a more attractive payment option for customers, EMB also works with businesses that offer these products:

  • Adult entertainment and novelties

  • Auto accessories and parts

  • Cigarettes, cigars, pipes, and smoking accessories

  • Collectibles and antiques

  • Designer fashions

  • E-cigarettes

  • Electronics

  • Firearms

  • Furniture

  • Gaming

  • Jewelry

  • Luxury goods and services, such as private planes and travel

  • MLM and direct sales

  • Moving companies

  • Nutraceuticals

  • Penny auctions

  • Precious metals and coins

  • Sports betting

  • Tech support

  • Tickets for flights, concerts, excursions

  • Vaping

  • Water purifiers

  In addition, EMB works with high-ticket and high-volume businesses, as well as those with bad credit and those that have been terminated by processors in the past.

  What’s needed to begin accepting electronic check payments

  Businesses interested in electronic check processing services must have a merchant account. To apply for a merchant account, begin by filling out EMB’s simple online application. In addition to the application, merchants will need to submit the following items:

  • A valid, government-issued ID, such as a driver’s license

  • A color copy of a valid credit card

  • A SSN (Social Security Number) or EIN (Employer Identification Number)

  • A secure, fully-operational website

  Though EMB cannot guarantee any approvals, it does promise a quick, simple application process. In addition, EMB has a long history of working with businesses of all sizes, merchants that have been rejected or terminated by other processors, as well as those with no credit or bad credit. Apply now and get approved in as little as 24 hours.

  This is not ACH! iCheck is a means of electronic check processing that facilitates faster funding on a wider variety of checks. It has fewer restrictions than ACH. This flexibility makes Remote Deposit Capture (iCheck) ideal for many sales environments. All check types can be accepted at Point of Sale or when the consumer is not present. This is the future of check processing!

  • No consumer notification or receipt is required.

  • No check writer authorization requirement.

  • Funding is guaranteed.

  • Free online activity monitoring.

  • Fast electronic deposit of funds, in as little as 24 hours.

  Try our new iCheck Service!

  Our iCheck service is a revolutionary new way to accept check-based payments. Want to see the funds from check sales immediately? It’s quick and easy to get started. Fill out a short application; provide some basic information about yourself, and your business. We’ll fast track your app and get you accepting checks in no time. Can’t wait to see those check deposits in your bank account as soon as the next day?

  It Really is This Easy

  Checks can be accepted at the Point of Sale or when the consumer is not present. This is the future of check processing, and we’re excited to get you set up with your iCheck account!

  Checks By Phone

  Our check-by-phone service allows merchants to accept and process checks over the phone. It comes with five basic features and a variety of benefits to make the operation of processing checks simple. This service is ideal for many industries, including utilities, bill payment call centers, sales, and customer service.

  iCheck

  Checks by Web, Checks by Phone, Paper Guarantee, and our new iCheck (instant check processing) solutions are just some of the ways in which we’re making it easier for our merchants to process payments and build successful businesses. This isn’t the archaic ACH solutions you’re used to; our services use the latest in check processing technologies.

  Paper Guarantee

  Worried about accepting paper checks? This is where Paper Guarantee comes into play. Paper guarantee is a means by which you can safely accept checks as payment. Paper Guarantee removes the apprehensions that come with accepting checks, by removing the risks.

  Checks By Web

  Web-based purchased have skyrocketed. Checks-by-Web is a way for consumers to purchase goods online without a debit or credit card. It provides a safer payment option, and allows you to keep up with the fastest growing industry in the world, eCommerce.

  iCheck is Our Premiere Check Solution

  While our other services will fit with most businesses, iCheck’s features, ease of use, fast payments, and quick application make it EMB’s premiere check solution. The application takes minutes, and requires very little documentation.

  Business funding

  Fast approvals, get working capital in your account now!

  It’s A Jungle Out There Without Business Funding

  Approximately 56% of businesses survive after five years, according to the business survival rates reported in the U.S. Bureau of Labor Statistics’ Business Employment Dynamics (BED) report. The report, which tracks the openings, expansions, closures, and contractions for businesses in the United States that have employees, shows that 44% of businesses fail. Businesses close for many reasons – flawed business plans, poor leadership, or a lack of money to make necessary changes to improve or fix a company.

  Businesses need to have the capital to react to changes, customers’ needs, and maximize their growth potential. Those that don’t have access to liquid assets likely won’t be in business much longer.

  Individuals are flooded with television and internet advertisements, promising flexible funding options. Unfortunately, it is not that easy for most businesses. Revised banking regulations make it difficult for some merchants, specifically newer, e-commerce, and high-risk businesses, to secure business loans from traditional lending institutions. Strict credit requirements, extensive review of tax forms and bank statements, and complicated contracts make it difficult for smaller or high-risk merchants to obtain business funding from banks.

  Not having a viable way to access capital makes businesses more vulnerable to bankruptcies and foreclosures. If they run into financial trouble, they don’t have many options.

  When businesses can’t get loans, they need apply for business funding via a high-risk merchant account provider and credit card processor, like eMerchantBroker.com (EMB). Regardless of a merchant’s credit, business type, or risk level, EMB offers ACH business funding and merchant cash advances to businesses that need funds.

  Unlike traditional lending institutions, EMB isn’t afraid to take a chance on a high-risk merchants or startups. EMB provides business funding, personalized payment solutions, and other merchant account services to all types of new and established businesses of all sizes.

  When merchants need fast working capital, look no further than EMB and its extensive network of lenders and diverse programs. EMB wants businesses to succeed, which is why it makes customer service a priority. To obtain business funding, begin the process today by filling out EMB’s quick and easy online application. If approved, merchants can get working capital in fewer than seven days.

  Every business needs extra money. EMB makes it easier to get merchants what they need, when they need it.

  Business funding is not a loan

  A loan is not the same thing as business funding. Whether a business is succeeding or not, merchants that take out business loans often are charged a high-interest rates, must sign over collateral, and make monthly payments. If businesses fail, they still must repay loans even after their businesses have shut down.

  Business funding works much differently. It doesn’t require collateral and interest rates are in line with industry standards. The way the funds are paid back also differs from a loan. With business funding, a small percentage of a business’ credit card sales is taken each day to pay back the money.

  Merchant account providers offer business funding options because they are good for their businesses. Business funding is considered an investment or a way for merchant account providers to buy in to businesses’ future sales. The future sales are purchased based on a business’ total bank statement monthly deposits. Merchant account providers take their percentages until the funds are paid back in full.

  Business funding is especially attractive to small and mid-sized businesses because when sales are slow, the amount that is deducted for repayment is proportionately lower. This means businesses don’t feel the strain of regular monthly payments when they have a lag in transactions.

  Additionally, merchants can do whatever they want with the money they get from business funding. Merchant account providers offer unrestricted use of funds. Traditional loans are approved with many restrictions.

  ACH business funding versus merchant cash advances

  ACH business funding, which also is referred to as bank funding, doesn’t require a merchant account. It is a popular choice because it doesn’t require a merchant account. Also, the amount of money a business can receive is based on the gross deposits in the merchant’s checking account over a four-month period.

  Cash advances require a merchant account and can take a little longer to get approved. Also, the merchant must do at least $2,500 in revenue via its merchant account each month. Merchant cash advances are based on a three- to six-month average of the business’ total gross credit card processing revenue.

  Why banks decline business funding for merchants

  One of the primary reasons banks decline merchants for business loans is due to non-sufficient funds (NSFs) or too many overdrafts. Many people think overdraft fees and NSF fees are one and the same, but, they are not. For example, if a check is written for a purchase that is larger than the amount of funds available in the account, an overdraft fee is charged and the institution covers the overdraft. This is considered a courtesy because it prevents the writer of the check from having to deal with a returned or bounced check or debit transaction. Banks also do this because they know customers are embarrassed by returned checks. Individual banks determine the amounts they will cover in overdraft protection.

  A person incurs a NSF fee when a debit overextends an account and whatever product or service was purchased doesn’t get paid. This is what’s considered a bounced check. Oftentimes, the amount doesn’t get paid because was the owner of the account opted out of overdraft protection or went over its overdraft protection limits. The bank, then, charges a NSF fee to the person who wrote the check on an account with insufficient funds. Not only can it be a hassle to deal with the business or individual who didn’t get paid for products or services, it also can make a bank put more restrictions on the account holder.

  Ways to keep overdraft and NSFs under control

  Overdraft and NSF fees are expensive and they can cost merchants their businesses if they don’t keep them in check. There are several things that merchants can do to avoid fees.

  It may seem like common sense but regularly watching account balances can ensure that balances aren’t too low. This is easy with the convenience of checking balances online, by phone, mobile apps, and at ATM locations.

  Also, merchants should set up low balance alerts if their financial institutions offer them.

  By automating the process of checking balances via email or text alerts, merchants will get notified when an account goes below a certain limit.

  It also may be smart to link a banking account to another account. For instance, if there is not enough money in a checking account to cover a transaction, the funds will be taken from a linked account to cover any shortfalls.

  Finally, when an overdraft occurs, merchants that deposit money quickly can sometimes prevent fees. Some banks have deadlines for adding money to accounts with negative account balances.

  Business funding for industries of all types

  Whether businesses are newer and have unforeseen expenses or are well-established but need makeovers, EMB tries to assist businesses by helping get the capital they need.

  EMB works with businesses in a variety of high-risk industries that offer the following products and services:

  • Adult entertainment and novelties

  • Auto accessories and parts

  • Cigarettes, cigars, pipes, and smoking accessories

  • Collectibles and antiques

  • Designer fashions

  • E-cigarettes

  • Electronics

  • Firearms

  • Furniture

  • Gaming

  • Jewelry

  • Luxury goods and services, such as private planes and travel

  • MLM and direct sales

  • Moving companies

  • Nutraceuticals

  • Penny auctions

  • Precious metals and coins

  • Sports betting

  • Tech support

  • Tickets for flights, concerts, excursions

  • Vaping

  • Water purifiers

  • Debt collection

  • Credit repair

  • Weight loss and fitness consulting or coaching

  • Insurance policies

  • Phone and wireless

  • Utilities

  • Magazines subscriptions

  • Educational seminars and online courses

  • Downloadable and mobile app software

  Documents needed to get ACH business funding or merchant cash advance

  EMB knows that in business, things come up that require additional cash flow. Whether a business has a rough month and needs to cover bills, want to expand, or wants to plunk money into a new product, EMB offers programs that can get a merchant the money it needs.

  The online application process is simple and easy. Though no approvals are guaranteed, EMB promises a fair process. In addition to a completed application, merchants will need to provide the following documents:

  • A copy of a valid, government-issued ID, such as a driver’s license or passport

  • A copy of a voided check or bank letter

  • A copy of the applicant’s lease and landlord contact information

  • Three months of the most recent bank statements

  • Three months of the most recent credit card processing statements

  No business should have to fail because they can’t get access to traditional loans. EMB understands this, which why it works with businesses that have bad credit, no credit, have filed for bankruptcy, or has unresolved tax liens. The team at EMB specializes in providing business funding to high-risk businesses, so it knows how to get merchants the money they need when they need it most.

  How can funding help you?

  Flexibility is a keystone for any good business. Having the ability to react to changes, needs, and opportunities is vital to raising your bottom line and maximizing your potential. Tweaking the revenue cycle can only do so much on short notice. Access to liquid assets can be a game changer for any business. If you or your business is in need of fast working capital and needs a cash advance look no further than EMB and its extensive network of lenders and diverse programs. We can offer you programs regardless of bad credit, or your type of business, our services include:

  ACH Business Funding

  Another popular form of funding is our ACH Business Funding Program. This program examines your monthly sales revenue based on the gross deposits in your checking account over a 4 month period. This is a popular business finance tool because there is no merchant account required. No Merchant Account Required. Get funding based on the gross deposits in your checking account over a 4 month period.

  Cash Advance Program

  Although the process can take longer, we can normally supply a merchant with working capitol in 5-7 business days. Our most popular program is our Merchant Cash Advance. This program looks at your business’ total gross credit card processing revenue and advances you based on a 3-6 month average. This is our most popular program, and we know why. Get working capital, in as little as 5-7 days?

  Couldn’t be simpler

  We’ve rebuilt our application process from the ground up to be simple and easy to use. It only takes a few minutes from beginning to end, and you’ll be glad you took that time. Don’t wait any longer.

  Cash on Demand

  If you need to expand, hire new talent, or get more inventory to fulfill orders, Cash Advance and ACH Business Funding is the right choice for you. Stop saving, and start using your new funds to push your business forward.

  A+ Rating with the BBB

  We Strive to Meet the needs of all our merchants, and go above and beyond to ensure they're always satisfied and that their support questions are answered quickly, and effectively. We are currently ranked A+ with the BBB.

  How do we compare to other providers?

  We offer the most competitive pricing, and the highest rate of approved merchant accounts, with a full suite of services and a no frills application process.

  APPROVALS WITHIN 24/48 HOURS

• HIGH RISK RATES AS LOW AS 2.99%*

• HIGH RISK ACCOUNT SPECIALISTS

• NO APPLICATION OR SETUP FEES

• NO ANUAL FEES AND NO GIMMICKS

• CHARGEBACK PROTECTION SERVICES

  APPROVALS WITHIN 24/48 HOURS

• HIGH RISK RATES AS LOW AS 2.99%

• HIGH RISK ACCOUNT SPECIALISTS

• NO APPLICATION OR SETUP FEES

• NO ANNUAL FEES AND NO GIMMICKS

• CHARGEBACK PROTECTION SERVICES

*2.99% pricing applies to qualified merchants. Mid-qualified and non-qualified rates can be higher.Contact us to get a free quote.

We Can Get You Approved!

Having trouble getting approved for your high risk merchant account, EMB approves 99% of all applicants.

We Specialize in High Risk

We offer high merchant merchant accounts to all business types in high risk categories. Are you simply looking for the right partner to help push your business forward and having trouble getting approved somewhere else? Let us fix that for you!

It Only Takes a Few Minutes

"Application was super easy, and simple. Thanks so much to the Agent that helped me find my way"

Applying is Fast and Easy

Our Online Application was developed with simplicity in mind. It only takes a few minutes, and requires some basic information. In the time it takes you to brew your morning coffee you can submit your application and let us get you started with your merchant account.

Sign Up Now

Still deciding? That’s okay, we have a dedicated staff on hand ready to answer any questions you might have about the process. We love talking to our merchants, and helping them launch their business.

Stop planning, and start earning

In a perfect world, we’d be able to spend all the time we needed to plan our perfect business. In today’s fast-moving economy, we don’t have that luxury. Don’t waste anymore time.

Still deciding? That’s okay, we have dedicated staff on hand ready to answer any questions you might have about the process. We love talking to our merchants, and helping them launch their business.

Ethoca

Ethoca’s alert system reduces card-not-present fraud by creating a bridge between merchants, and card issuing banks, giving merchants the power to prevent chargebacks. Get chargeback notification in hours, instead of weeks.