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What Is a Merchant Account — And Do You Actually Need One?

Here’s the rewritten post, centered around FoundersPay specifically:

What Is a Merchant Account — And Do You Actually Need One?

By FoundersPay · 7 min read · Merchant Services

If you’ve ever tried to set up credit card processing for your business, you’ve probably run into the term “merchant account.” It sounds straightforward. It isn’t always. Some processors tell you that you need one. Others say you don’t. Some bundle it invisibly into their service. Others charge you separately for it.

At FoundersPay, we get this question a lot. Here’s a clear answer.

Cheat Sheet:

  • A merchant account is a special bank account that holds funds from card transactions before they transfer to your business checking account.
  • Services like Square and Stripe don’t give you your own account. You’re pooled in with thousands of other merchants, which creates instability.
  • A dedicated merchant account through FoundersPay gives you your own account, negotiated rates, and a real person to call when something goes wrong.
  • For businesses processing more than $10,000 per month, a dedicated merchant account almost always makes financial sense.
  • Getting set up with FoundersPay typically takes 1 to 3 business days.

What is a merchant account?

When a customer swipes their card at your business, the money doesn’t land in your bank account instantly. It moves through a series of steps involving the card networks (Visa, Mastercard), the customer’s bank, and your payment processor.

A merchant account is a dedicated holding account that sits between the card networks and your business bank account. When a transaction settles, funds go into your merchant account first, then transfer to your checking account, typically within 1 to 2 business days.

Think of it as a staging area. It exists specifically to facilitate card transactions and is governed by your agreement with your processor and the card networks.

The difference between a merchant account and an aggregator

This is where most of the confusion comes from. Services like Square, Stripe, and PayPal use a model called payment aggregation. You don’t get your own merchant account. Instead, you’re processed under their umbrella account alongside thousands of other businesses.

Here’s how that stacks up against a dedicated merchant account through FoundersPay:

Dedicated merchant account (FoundersPay)

  • Your own account, not shared with anyone
  • Rates negotiated specifically for your business
  • Stable, with far lower risk of holds or freezes
  • 24/7 live support, 365 days a year
  • Direct relationship with your processor and acquiring bank

Payment aggregator (Square, Stripe, PayPal)

  • Shared account across thousands of merchants
  • Flat-rate pricing, often higher at volume
  • No underwriting means faster setup but more account instability
  • Support is largely self-service (chat, help articles)
  • Limited recourse when your account gets flagged or frozen

Aggregators are convenient for brand-new businesses or very low-volume sellers. But that convenience comes with a real trade-off. Because aggregators skip underwriting and accept anyone instantly, they manage risk on the back end. That means your account can be frozen or your funds held with little warning. For an established business, that’s a serious problem.

Do you actually need a dedicated merchant account?

The honest answer: it depends on your volume and your risk tolerance.

You probably don’t need one if you’re just getting started, processing under $3,000 to $5,000 per month, and need to get running immediately with no upfront commitment. An aggregator is a reasonable starting point at that stage.

You almost certainly do need one if you’re processing $10,000 or more per month, operate in retail, restaurant, or a service-based industry, or simply can’t afford a sudden account hold disrupting your cash flow. At meaningful volume, the rate difference between a dedicated merchant account and a flat-rate aggregator can add up to thousands of dollars per year.

A dedicated merchant account through FoundersPay also means you have a real point of contact when something goes wrong. Not a chatbot. Not a help center article. A person who knows your account.

How FoundersPay gets you set up

A lot of business owners assume the application process is complicated. It isn’t, at least not when you work with us. We handle the paperwork, walk you through the underwriting process, and typically have merchants up and running in 1 to 3 business days.

We work with businesses across retail, restaurant, eCommerce, and service industries throughout South Jersey and the Philadelphia area. Whether you need a countertop terminal, a Clover POS system, mobile payments, or an eCommerce solution, we’ll set you up with the right equipment and a processing structure that fits how you actually do business.

What about higher-risk business types?

Some industries are classified as higher risk by card networks, which means not every processor will work with them. If your business falls into that category, the answer isn’t to default to a generic aggregator. It’s to work with a processor who knows how to place your account correctly from the start.

FoundersPay has experience working across a range of business types. If you’re not sure whether your industry creates any complications, the best thing to do is ask us directly. We’ll give you a straight answer.

A merchant account isn’t just a technical requirement. It’s the foundation of how your business gets paid. Getting it right from the start, with the right pricing, the right equipment, and the right support, makes a difference you’ll feel every day.

Ready to find out what the right setup looks like for your business? Give FoundersPay a call at 856.696.1906 or email hello@FoundersPay.com to get a free quote.

 

Nick
In Blog

What Is a Chargeback — And How Can Small Businesses Fight Back?

What Is a Chargeback — And How Can Small Businesses Fight Back?

By FoundersPay · 8 min read · Merchant Services

Chargebacks cost U.S. merchants an estimated $125 billion per year. For small businesses operating on thin margins, even a handful of disputed transactions can do real damage, not just to your revenue, but to your standing with your payment processor.

The frustrating part is that many chargebacks are avoidable. And even when they’re not, merchants have more power to fight them than most realize. Here’s what you need to know.

The Cheat Sheet:

  • A chargeback is when a customer disputes a charge directly with their bank and the bank reverses the transaction, pulling funds from your account.
  • Friendly fraud — customers falsely claiming they didn’t authorize or receive a purchase — accounts for the majority of chargebacks.
  • Merchants have a limited window (typically 7 to 30 days) to respond to a chargeback dispute.
  • Good documentation (receipts, delivery confirmations, signed agreements) is your most powerful defense.
  • Keeping your chargeback ratio below 1% is critical. Exceeding it can result in higher fees or losing your merchant account entirely.

What is a chargeback?

A chargeback occurs when a customer contacts their bank or card issuer to dispute a transaction instead of coming to you directly. The bank investigates, and if they side with the customer, the transaction amount is reversed, pulled directly from your merchant account, along with a chargeback fee that typically runs $20 to $100 per incident.

Unlike a standard refund, which you control, a chargeback bypasses you entirely. By the time you’re notified, the money is already gone. Your job at that point is to build a case to get it back.

How does the chargeback process work?

  1. Customer disputes the charge. The cardholder contacts their bank and claims the charge was unauthorized, the item wasn’t received, or the product wasn’t as described.
  2. Bank issues a provisional credit. The issuing bank typically credits the customer immediately while the dispute is investigated, meaning the funds leave your account right away.
  3. You’re notified and given time to respond. Your processor notifies you of the dispute. You typically have 7 to 30 days to submit a rebuttal with supporting evidence.
  4. The bank makes a ruling. If your evidence is strong, the funds are returned. If not, the chargeback stands and you’re also out the chargeback fee.
  5. Arbitration (if escalated). Either party can escalate to the card network for a final ruling. Arbitration is expensive and rarely worth it for small-dollar disputes.

Why do chargebacks happen?

True fraud. Someone used a stolen card to make a purchase at your business. This is genuine fraud. The real cardholder didn’t authorize the transaction. EMV chip readers and tap-to-pay significantly reduce this risk for in-person transactions.

Merchant error. Processing errors, duplicate charges, incorrect amounts, or failing to issue a refund you promised. These are preventable with good processes and are generally the easiest disputes to resolve if you catch them early.

Friendly fraud. This is the big one. A customer makes a legitimate purchase, receives what they ordered, and then disputes the charge anyway. Friendly fraud accounts for an estimated 60 to 80% of all chargebacks and is on the rise as consumers become more aware of the dispute process.

Note: Friendly fraud is technically a form of theft. Merchants who maintain good records win a significant portion of these disputes, but only if they respond within the deadline and submit the right documentation.

How to fight a chargeback: what evidence you need

When you receive a chargeback notification, your response needs to be specific, organized, and submitted on time. The following documentation gives you the strongest chance of winning:

  • Signed sales receipt or transaction record showing the cardholder authorized the purchase
  • Proof of delivery (tracking number, delivery confirmation, or signed receipt for physical goods)
  • Communication records (emails, texts, or messages showing the customer received and acknowledged the order)
  • Photos or documentation of the item as shipped or service as delivered
  • Your refund and cancellation policy, clearly displayed at point of sale
  • Any prior interaction with the customer about the transaction or a complaint

For in-person transactions, EMV chip authorization (the customer inserting their chip card) is one of the strongest pieces of evidence you can have. It shifts liability away from you and back to the card issuer in most fraud scenarios.

How to prevent chargebacks before they happen

Use clear billing descriptors. If the name that appears on your customer’s card statement doesn’t match what they recognize, they’ll dispute it. Make sure your descriptor clearly identifies your business.

Post your refund policy prominently. Customers who know how to get a refund from you are less likely to go to their bank instead. Make your policy easy to find at checkout.

Follow up after large purchases. A quick confirmation email or receipt goes a long way toward preventing “I don’t recognize this charge” disputes.

Respond to customer complaints quickly. Most chargebacks start as unresolved complaints. A business that responds fast and resolves issues directly rarely sees those turn into disputes.

Use AVS and CVV verification for card-not-present transactions. Address Verification System and CVV checks add a layer of authentication that makes fraudulent transactions harder and gives you better standing in disputes.

Why your chargeback ratio matters

Card networks like Visa and Mastercard monitor your chargeback ratio, total chargebacks divided by total transactions in a given month. The threshold is typically 1%. Exceed it consistently and you’ll face higher processing fees, mandatory chargeback monitoring programs, and ultimately the risk of losing your merchant account altogether.

For a business processing 500 transactions a month, that means you can absorb no more than 4 to 5 chargebacks before you’re in the danger zone. It’s a tighter margin than most merchants realize.

Chargebacks are an unavoidable part of accepting card payments, but they don’t have to be an unmanageable one. The right setup, the right documentation habits, and the right payment partner can dramatically reduce both your chargeback rate and your exposure when disputes do arise.

Dealing with too many chargebacks? FoundersPay works with small businesses to set up payment systems that reduce dispute risk from day one, and we’re here to help when issues come up. 24/7 support, 365 days a year. Visit FoundersPay.com to get started.

Nick
In Blog

5 Ways Small Businesses Are Overpaying for Payment Processing (And How to Fix It)

5 Ways Small Businesses Are Overpaying for Payment Processing (And How to Fix It)

By FoundersPay  ·  8 min read  ·  Merchant Services

The average small business pays between 1.5% and 3.5% per transaction in credit card processing fees. For a business doing $500,000 in annual card volume, that’s up to $17,500 a year — before factoring in monthly fees, equipment costs, and hidden charges that most merchants never scrutinize.

The problem isn’t just the fees themselves. It’s that most business owners set up payment processing once and never revisit it. Processors count on that inertia. Here are the five most common ways small businesses overpay — and what you can do about each one.

The Cheat Sheet
  • Mismatched payment setups mean you’re paying for features you don’t use — or missing ones that could drive more sales.
  • Equipment leases can turn a $400 terminal into a $3,000+ expense over the life of a contract.
  • Cash discount and dual pricing programs can reduce your effective processing cost to near zero when set up correctly.
  • Unreviewed merchant statements are one of the easiest places for processors to quietly raise rates.
  • A free rate review takes 15 minutes and can save you thousands annually.

1. Paying for a setup that doesn’t fit how you actually do business

Generic payment processing solutions are designed to work for everyone — which often means they’re not optimized for anyone. A mobile contractor paying monthly fees for an eCommerce gateway they never touch is wasting money. A restaurant without tableside or tap-to-pay capabilities is creating unnecessary friction at checkout.

The right payment setup depends on how and where you take payments. Brick-and-mortar businesses need fast, reliable in-person terminals. Service businesses that invoice clients need payment links and electronic invoicing. Restaurants benefit from POS systems built specifically for table management, tips, and order flow. A one-size-fits-all solution rarely fits any of these well.

Beyond the monthly fees, a mismatched setup can also cost you sales. Research consistently shows that checkout friction — slow systems, limited payment options, or clunky interfaces — directly increases abandoned transactions. In a competitive environment, that’s revenue you can’t afford to leave behind.

Fix it: Talk to a payment specialist about how your business actually takes payments day-to-day. The right setup should match your workflow, not force you to work around it — and it shouldn’t include services you’re paying for but never use.

2. Leasing payment terminals instead of owning them

Terminal leases are one of the most profitable products in the payment industry — for the processor, not the merchant. A terminal that retails for $300–$500 can cost $2,000–$4,000 or more over the course of a multi-year, non-cancelable lease.

Many merchants sign equipment leases without realizing they’re locked in. Even if you switch processors, you may still be obligated to pay out the remaining lease balance.

Fix it: Calculate your remaining lease payments and compare them to the cost of purchasing a replacement terminal outright. In most cases, buying is the better financial decision. Reputable processors will often include terminals as part of their merchant agreement at no additional cost.

3. Not taking advantage of dual pricing or cash discount programs

Processing fees are a cost of doing business — but they don’t have to come out of your margin. Dual pricing (also called a cash discount program) lets you post two prices: one for cash and one for card. When customers pay by card, the processing fee is built into the price they pay.

Implemented correctly, dual pricing can reduce your effective processing cost to near zero. It’s now widely supported by Visa, Mastercard, and other card networks — provided it’s set up in compliance with their rules.

Many retail, restaurant, and service businesses have adopted this approach successfully, and customer acceptance is generally high when it’s communicated clearly at the point of sale.

Fix it: Work with a processor who has experience implementing compliant dual pricing programs. The setup matters — improper implementation can result in chargebacks or network violations.

4. Accepting a rate increase without noticing it

Most merchant agreements allow processors to change rates with as little as 30 days’ notice — often buried in a notification you may never see. Over time, small rate adjustments can add up to a significantly higher effective rate than what you originally agreed to.

Merchant statements are also notoriously difficult to read by design. Without a clear baseline to compare against, it’s hard to know when your costs have crept up.

Fix it: Pull your last three merchant statements and look at your effective rate — total fees divided by total volume. If that number has increased without a corresponding change in your card mix or volume, your rates may have been quietly adjusted.

5. Never shopping your processing rates

The payment processing industry is highly competitive, and rates are negotiable. Processors know that most merchants won’t switch once they’re set up, so there’s little incentive to proactively offer better pricing.

Businesses that haven’t reviewed their processing costs in the past 12–18 months are almost certainly overpaying. A free rate review from an independent processor typically takes 15 minutes and can identify savings you’re currently leaving on the table.

Fix it: Have your statement reviewed by a payment specialist who can show you what you’re actually paying versus what’s available in the market — no obligation required.

Payment processing doesn’t need to be a black box. With the right pricing structure, the right equipment setup, and a processor who’s transparent about costs, most small businesses can meaningfully reduce what they pay and put those savings back where they belong — into the business.

Find out what you’re actually paying

FoundersPay offers free, no-obligation statement reviews for small businesses. We’ll break down your costs line by line and show you exactly what a better deal looks like.

Get a free quote. Email hello@FoundersPay.com

Nick
In Blog

Everything You Need to Know About Crypto Credit Cards

Everything You Need to Know About Crypto Credit Cards

With more people than ever before investing in cryptocurrency, crypto credit cards are also becoming more commonly used. Keep reading to discover everything you need to know about the top crypto credit cards and how readily accepted they are at this current time.

How Easy Are Crypto Credit Cards to Use?

A crypto credit card works in the same way as your traditional credit card. One of the top reasons that someone would want to invest in this type of card is that they offer generous cashback rewards on purchases. However, instead of receiving cash as you would on a standard card, you’ll be rewarded in cryptocurrency or the company’s rewards points. With so many cryptocurrencies on offer, you can then convert these to the one of your choice to continue building your investments. As with any credit card, you’ll need to ensure you pay off your card as usual on time to avoid late fees. You’ll find cards that allow you to pay both in dollars or crypto, so you’ll want to consider which would be the best solution for your current needs.

Are Crypto Credit Cards Widely Accepted Yet?

In general, crypto credit cards are already well accepted both online and in stores. As with any type of credit card, you’ll need to check that the website or store you are purchasing from will allow you to use this card. This is especially true when you are paying in crypto, as opposed to just receiving rewards in cryptocurrency. As time progresses, we expect crypto credit cards to become more and more popular, so more stores will be willing to accept this type of payment.

Top Crypto Credit Card Options

With so many crypto credit cards to choose from already, it can be tough knowing which would be the best solution. These are just a few of the most popular crypto credit cards on the market today.

BlockFi Rewards Visa Signature Credit Card

The BlockFi Rewards Visa Signature Credit Card is one of the top new releases of the past year. As well as offering great sign-up bonuses, you’ll earn up to 3.5% back in cryptocurrency within your first three months. The great thing about this card is that you can use it anywhere that visa is accepted, making it easy to shop online and in-person.

Crypto.com Visa Cards

Crypto.com offers a range of Visa crypto credit cards, and they also come with great rewards perks. For first-time crypto credit card users, you’ll probably want to look at the free Midnight Blue visa card. This offers you 1% crypto back on any purchase. You can then continue upgrading your card as you invest more, offering you higher cashback rates.

Gemini

Gemini is compatible with over 30 cryptocurrencies and offers no exchange fees to customers. There’s no annual fee with this card, and transaction fees are reasonably low, depending on which card you select. It’s accepted by any store or website that takes MasterCard, meaning it’s well-accepted around the world.

As you can see, it’s an exciting time for anyone looking to invest in cryptocurrency, as a crypto credit card can help you on this journey. We recommend you undertake further research to ensure you select the card that’s right for you and to minimize your financial risk when opening a new credit card.

———

This article does not constitute financial and/or legal advice. Always contact a professional.

Nick
In Blog

EMV: Why is it important to make the transitions to chip card readers?

What is EMV?
EMV chip technology is becoming the global standard for credit card and debit card payments. Named after (Europay, MasterCard® and Visa®), this technology utilizes embedded microprocessor chips that store and protect cardholder data. This standard has many names worldwide and may also be referred to as: “chip and PIN” or “chip and signature.”

What is EMV/Chip technology?

EMV technology is an evolution in our payment system that will help increase security, reduce card-present fraud and enable the use of future value-added applications. Chip-enabled cards are standard credit/debit cards that are embedded with a microprocessor chip. Some may require a PIN instead of a signature to complete the transaction process.

What makes EMV different than the traditional magnetic stripe card payment?

Simply put, EMV is the most recent advancement in a global initiative to combat fraud and protect sensitive payment data in the card-present environment. Payment data is more secure on a chip-enabled payment card than on a magnetic stripe (magstripe) card, as the former supports dynamic authentication, while the latter does not (the data is static). Consequently, data from a traditional magstripe card can be easily copied (skimmed) with a simple and inexpensive card reading device – enabling criminals to reproduce counterfeit cards for use in both the retail and the CNP environment. EMV technology is effective in combating counterfeit fraud with its dynamic authentication capabilities ensuring the authenticity of the card.

What does EMV migration mean for card-not-present (CNP) merchants?

As EMV technology is adopted in the card present space, it is expected that fraud will also shift to the least secure channels, including CNP/eCommerce. From an online fraud perspective, it’s important that CNP businesses be prepared for this anticipated shift, as experienced in other regions that have already migrated toward chip card technology.
As fraud migrates online and fraudsters continue to get more sophisticated, the tools you have in place now may no longer be advanced enough to protect you and your customers. The strategy is key and it’s imperative to take the extra measures to know your customers their behavior. It is recommended that you avoid the use of Address Verification (AVS) and Card Code Verification Values (CVV) checks as your sole fraud detector since the false positive exposure can be high with these tools alone.

Tools such as 3D Secure utilize SSL technology while adding an authentication step to provide a standardized and secure method of performing eCommerce transactions. By requesting further payment authentication, 3D secure recreated the security of a physical payment environment.
These tools will help reduce eCommerce fraud while having no negative impact on your customers’ experience. Having the ability to control your fraud prevention at the business level, without the required assistance of IT support or third-party vendors, helps to ensure that your non-fraudulent transactions are processed without issue.

Additional strategies to reduce the risk of eCommerce fraud:

  • Achieve and maintain PCI Compliance
    • Keep your shopping cart software updated
    • Always require Address Verification (AVS) and Card Code Verification (CVV)
    • Limit the number of declined transactions
    • Keep a list of confirmed fraudulent transactions
    • Require strong passwords for customers
    • Utilize MasterCard SecureCode or Verified by VISA (3D Secure Tools)

 

 

ccadmin
In Blog

Millennials in the Workforce

​Millennials in the Workforce
​Every generation faces different obstacles when entering the workforce, and Millennials are no exception. The Millennials are the generation that follow Generation X and the Baby Boomer era, with birth dates ranging from the early 1980s to the late 1990s. These Millennials are now coming of age, and they are entering the workforce by the millions. However, unlike with previous generations, advancements in technology have drastically changed the hiring process and job roles.

​Changes in the Hiring Process
It used to be that searching for a job was done by flipping through the classifieds in the local newspaper, or by talking directly to representatives of a company. Nowadays job searching usually takes place online using various employment search engines that allow a prospective employee to submit a resume within minutes. While this process has its advantages, there are distinct disadvantages as well.

An advantage that millennials have, in regards to the hiring process, is the ability to apply for several jobs at the same time using online job platforms. Instead of choosing one particular job, prospective employees can search hundreds of jobs that meet their criteria and submit applications accordingly. In addition to being able to view multiple job openings, the internet has made it possible for job searchers to posts resumes on employment websites so that employers can contact them if they have the qualifications they are seeking.

While there is no doubt that technology has improved certain aspects of job searching, there are some drawbacks as well. When applying for a job online, there is no face-to-face interaction with the potential employer, and therefore it can be difficult to express other qualities, such as personality traits, that may put them ahead of the competition. The ease at which candidates can submit applications, also means that millennials might be competing with dozens of other applicants.

​Job Roles in the Modern World
As more Baby Boomers retire from the workforce, they leave an employment gap for the Millennials to fill. However, with advancements in technology changing the way business is conducted, many of these Millennials must adapt to new job roles. And while Millennials have access to information on a level previously unheard of, this can create some disadvantages as well.

With the scope of the internet increasing, Millennials bring to the table the ability to gather information from a vast array of resources. This can lead to increased efficiency in the workplace, in addition to opening new lines of communication among clients. Whereas meetings with clients in other parts of the country used to involve boarding a plane and meeting the client in person, this can now be done online using Skype or other web applications.

These advancements in technology have also led to skepticism as to whether Millennials are as dedicated to their job as prior generations. Employers are concerned that with so much communication taking place in a virtual world, Millennials will have difficulty dealing with issues in person. Furthermore, there is some doubt whether Millennials value the importance of meeting face-to-face.

ccadmin
In Blog

New Business Startup Tips

New Business Startup Tips​
Starting a new business can be both exciting and terrifying. It’s a big risk, but if you start with a solid plan and you have a strong work ethic, it could pay off in a big way. It could allow you to truly see the fruits of your labor, instead of sweating for a corporation that neither cares for your contributions nor rewards you accordingly.Of course, there can be a pretty big learning curve associated with launching and managing your business venture. Where do you start and how can you ensure the greatest chance of success? Here are a few tips for new business startups.

Understand the Process
You’re not reinventing the wheel, and there are untold resources to help you understand the basics of starting a new business. If you’ve got an MBA under your belt, you probably have a lot of theoretical knowledge, along with some practical skills. This is a great start.

From there you must develop your products or services, undertake market research, and create your business plan. If you take time to plan properly during the preparatory phase, the rest of the process (funding, partnerships, setting up a supply chain, choosing a business location, getting permits, and registering your business) will fall into place more easily.

Hiring
As a startup, you could face insufficient funding, and this may limit your options when it comes to hiring. That said, you still have to try to find the right people for the job.

Hiring requires you to strike a balance between education, experience, and finding people that fit your work culture. What you’re bound to find is that you’ll hook viable candidates based not solely on the salary and benefits offered, but your plan and your enthusiasm for the venture. You might also want to offer future benefits like stock options should your company IPO at some point.

Funding
There’s no getting around the fact that most startups need capital. This can come from a variety of sources, including government grants, banks/lenders, partners, and investors. In most cases, your business plan will play a pivotal role in securing funding, although your willingness to contribute personal funds (or put your money where your mouth is) could also be important.

Work/Life Balance
You’ve gotten your business off the ground. Now what? You’ll be working a lot of long hours to keep your business afloat long enough to start earning income. However, you don’t want to burn out and leave your business in the ashes, so it’s imperative that you attempt to keep some semblance of a life outside of your business.

Passion for Your Professional Pursuits
Starting a new business is hard, even if you love what you do. If you don’t have a strong passion for the industry or your business idea, you’re not going to make it through. This is something you need to think about before you ever consider entrepreneurship.
​

ccadmin
In Blog

How Merchant Cash Advances (MCA) Can Help Grow Your Business

​If you are one of tens of thousands of businesses struggling to get a foothold on startup finances, you’re not alone – conventional financing has become more and more difficult to obtain, especially if your gross monthly receipts are less than $10,000. Thanks to the advent of merchant cash advances, traditional financing is now often used as a last resort instead of a first.Below are a few key reasons why merchant cash advance funds can grow both new and existing businesses.

They’re lightning fast:
Whereas traditional financing takes weeks of underwriting, piles of paperwork and numerous phone calls to get funded, getting a merchant cash advance takes much less effort and can often get funded within 3-4 business days.

FoundersPay has streamlined the MCA process, allowing merchants to apply and get financing in a short period. Less time finagling with loan applications and waiting on funding is more time available to spend growing your business.

Payments are much smaller:
It’s hard to find a better alternative when payments are so small and, in fact, may shrink if your daily sales decline throughout the month. To clear any confusion, payments are based off a percentage of your daily sales (Visa and MasterCard) and not a flat monthly rate like traditional bank financing offers. These smaller payments build business credit, which may open the door to conventional financing down the road. And most advances are paid off in 6-7 months. This lessens stress, allowing businesses to earn more and pay less each day. (Imagine that!)

The bottom line:
Financing small business ventures is difficult when you lack personal resources or haven’t established business credit.

With merchant cash advances, at least small businesses and even larger businesses that are struggling have a fighting chance to make payroll, purchase inventory or expand.

​

ccadmin
In Blog

Why Your Business Needs to Accept EMV/Chip Credit Cards

​Credit card security is a serious issue. Remember the 2013 Target credit card hack? There are far too many malicious entities out there who do whatever they can, to steal coveted credit card information from consumers for their own ends. In 2013, the cost of credit card fraud in the United States rose to an intimidating $11 billion.

Preventing credit card fraud is a matter of the utmost concern for card issuers. Recently, major card issuers like American Express have begun to issue credit cards that are EMV chip enabled. This new technology provides better security against theft and fraud, and consumers are quickly beginning to favor chipped cards for this reason.

For these chip cards to work, merchants need to update their point of sale systems. If you’re not making the switch to EMV-friendly POS systems, your business could be left behind in the dust as consumer demand for chips rises.  While most large merchants are already on board, many smaller retailers are still catching up.

Here are some of the biggest reasons why you need to start accepting EMV credit cards:

1) They help you fight back against fraud.

EMV cards have small chips embedded inside them. These chips generate unique information for each transaction, making it much harder for fraudsters to steal credit card information and create counterfeit cards. To accept these cards as payment, you will need an EMV-enabled point of sale system. These have special slots in them, and software equipped to process the embedded chips.

2) Your customers want it.

Your customers are quickly adopting EMV credit cards to protect themselves against credit card fraud and identity theft. As this process continues and the cards become more widely used, merchants that can’t accept EMV cards will be left out. Customers are beginning to expect retailers to accept this safer form of credit card payment, and they might not want to buy from you if you don’t have the equipment to do so.

3) It reduces your own liability.

As of October 2015, businesses that are not able to accept EMV cards could be held liable for certain kinds of fraudulent transactions. When you’re running a small business, every dollar counts, and you may not be able to afford this kind of liability.