What Is a Pawn Shop Merchant Account?

A pawn shop merchant account is vital for any type of physical or online pawn shop. It lets them accept different payment methods for collateral items traded for loans. Host Merchant Services gives pawn shop owners one of the best and most secure payment processes. They can efficiently manage payments from online and in-store credit cards, debit cards, gift cards, and NFC contactless payments.

This multi-purpose merchant account lets pawn shop managers manage their sales efficiently with comprehensive reports and sales info. This data guides them in making savvy business decisions. Also, a dedicated support team from Host Merchant Services ensures quick and efficient resolution of any issues or queries. A pawn shop merchant account is the best option in a field where swift transactions and trustworthy payment processing are critical to success.

Why Are Pawn Shops Considered High Risk?

Merchant services companies don’t accept pawn shop businesses and consider them high-risk. One main reason is the high average price for things sold in a pawn shop, typically above $200. Another important reason is that credit card processors can be liable for chargebacks if a customer disputes a transaction. This is particularly true for transactions that involve high-value items. These disputes lead to potential losses for the credit card processor.

Additionally, many other pawn shop businesses sell their goods over the Internet, whether as their primary sales channel or as a secondary channel to their brick-and-mortar store. Online sales of products are more susceptible to fraud and chargeback than physical contact interactions among buyers and sellers.

With most of the shopping being done online in this era of technology, fraudsters have become smarter and harder to detect. Pawn shops are also regulated under different consumer protection acts in various states nationwide. Extra scrutiny during underwriting by credit card processors representing pawnshops is conducted to guarantee compliance with all the relevant laws governing these kinds of financial institutions before issuing approval on any applications.

What are the Requirements for a Pawn Shop Merchant Account?

Applying for a pawn shop online merchant account with Host Merchant Services is simple and seamless, ensuring a hassle-free experience from start to finish. Offering comprehensive data from your end would help us have an accelerated onboarding experience. To submit your application, you'll have to collect a few fundamental documents that include:

• Your Company’s EIN document
• Both personal and business financial records
• Verification of the active address
• Incorporation articles
• The primary person's driving license
• A business layout (this is not obligatory)

Developing a business scheme helps us understand your forecast about the advancement and elevation of your pawn shop venture. Furthermore, it is obligatory to present a nullified check that verifies the possession of a business banking account. Procuring these vital documents in advance can speed up your request process, enabling you to kick off receiving payments via your new merchant account as soon as possible.

Why Choose Host Merchant Services?

At Host Merchant Services, we boast over ten years of experience handling high-risk credit card transactions. This experience puts us in a unique position to provide you with a pawnshop merchant account at cost-effective rates. In addition to assisting with your merchant account, we're highly confident we can minimize your chargeback ratio.

• Transparent Rates: Choosing a payment processor that understands your business and offers fair pricing is crucial for business growth and profitability.
• Customer Support: Our team is available 24/7 to assist with any queries or issues.
• Speedy Approvals: The approval process for high-risk merchant accounts might be challenging. But at Host Merchant Services, we offer swift approvals.
• Robust Security: We maintain a continuously monitored, frequently audited PCI-Level 1 secure payment portal for any security breaches.

Pawn Shop Merchant Account by Host Merchant Services

Host Merchant Services prides itself on strong ties with credit card firms and banks specializing in industry regulation. This puts us a step ahead of the rest. We offer secure, effective credit card processing for in-store and online pawn businesses.  We also have a robust chargeback and fraud prevention system. Choosing Host Merchant Services means access to modern technology and dependable support designed for the pawnbroker world. Here are the services we provide to pawn shops:

• Point-of-Sale: A POS is a physical device that enables your business to receive credit/debit card payments in your pawnshop. Beyond facilitating payments, the POS device includes invoicing features and analytics, streamlining your work.
• Recurring Merchant Account: This method effectively receives payments from customers on a recurring basis. It ensures timely repayments against collateral for your business.
• E-commerce Payment Gateway: An e-commerce payment gateway is essential for your online pawn shop's website. This tool lets you accept credit/debit card payments online, authorize transactions, and ensure smooth settlement in the merchant bank account.
• Virtual Terminal: The virtual terminal serves as a web or desktop-based payment solution for accepting payments over the phone. You input the customer's card details into the virtual terminal form, and the payment request is sent to the customer. Upon confirmation of the transaction, the payment is processed. This solution is also compatible with tablets or large-screen mobile phones.
• Chargeback Prevention: Consider additional merchant services, such as chargeback alerts, to empower pawnshop business owners to minimize chargeback ratios and boost sales. We strongly recommend merchants utilize chargeback alerts and notification services, as they positively impact ongoing business operations.