How the New Biden Administration May Change Laws for High-Risk Merchant Account Holders

It was a cliffhanger for the American people, but after waiting until all the votes were counted properly as well as several protests, Joseph R. Biden became the 46th President of the United States.

Once the celebrations calmed down and the new administration transitioned into power, a lot of people wondered what Biden would be like as a President and what changes his administration would implement. Businesses expect better days after 4 tumultuous years with President Trump. But what exactly can high-risk merchant account holders expect from the new Biden administration?

Finance-Related Campaign Promises from Biden

In his previous legislative work, Joe Biden has favored banks and credit card companies, although he is seen as a threat to the post-pandemic rally. After the 2005 bankruptcy legislation, Biden seemed to have changed his perspective, as evidenced by his speeches in battleground states during his campaign.

Biden said he would like to strengthen the Consumer Financial Protection Bureau that has jurisdiction over banks, payday lenders, credit unions, securities firms, debt collectors, and other related companies. In one of his rallies, Biden expressed his support over fellow Democrat Elizabeth Warren’s bankruptcy plan that aims to help consumers shed their debts easily.

As a high-risk merchant, this means getting a better approval rate for an account and other changes within the rules for high-risk businesses. The Biden administration will support, recognize, and regulate the cryptocurrency industry, which is now a leading disruptor in the world of finance. In one of his speeches, Biden expressed how he would find ways to make cryptocurrency more available to the public, so perhaps it’s time to consider accepting cryptocurrency on your website. This is welcome news after crypto businesses suffered from the Trump administration’s hands-off attitude in the matter.

Ripple, a cryptocurrency as well as a digital payment network for financial transactions, has threatened to move out of America because of this issue. But now, merchants who want to accept Bitcoin and other cryptocurrency payments can already apply for a secure high-risk merchant account from acquiring banks.

Biden Administration Merchant Account Policy Predictions

Although many believed that a Trump re-election would favor merchants because of how it will drive the stock market up, Biden’s win is a signal that change is indeed coming and it is for the greater good of the country.

President-elect Joe Biden will focus on getting the country back on track after the pandemic, which means that we can expect changes in the laws that govern businesses, especially high-risk merchant account holders.

At the end of the day, it’s really all about riding with the tides and doing your best to maintain a good record, even if your business is considered high risk. Depending on your industry, you may have taken a big hit because of the pandemic.

But there are always ways to bounce back and keep things going no matter what the risks are when you partner with a reliable payment processing company. There are high hopes for the new Biden administration so we can only look forward to better things going forward.

Mitch Fardell( Merchant Account Specialist )

Mitchell Fardell is a highly experienced payment processor who has worked for First Card Payments since 2019. In that time, he has worked on large accounts, small accounts, and everything in between.