3 Full Proof Ways to Fight Online Fraud

Oct 13, 2015

If you own an ecommerce business, you’ve probably faced chargebacks. Chargebacks are like a virus to your business. Once a chargeback occurs, it is only a matter of time before another takes its place. This is because fraudsters quickly pass on information about the security weaknesses in merchant infrastructure. For this reason, once a merchant encounters a chargeback they must analyze and resolve them quickly. So how does a business owner protect from chargebacks?

Generally, the buyer claims one of three things when a chargeback occurs: (a) the buyer didn’t receive the items ordered; (b) the buyer didn’t authorize the purchase of the items; (c) or the items received weren’t as described. Once the chargeback process begins, it is up to the merchant to prove fraud. If a chargeback occurs, most credit card processors will hold the money until the dispute is resolved. The processor will then turn to the merchant to prove that the customer is making a false statement. Luckily there are some actions merchants can take to successfully dispute fraud.

Not Getting the Product

To fight charges of not receiving the product, merchants must establish shipping procedures for all mailed products. Written procedures will include how items are packaged, what type of protection is used, and a timeframe for delivery confirmation.

Accusations of Fraud

Merchants must invest in a good platform or analytics program that will capture the IP address, time, dates, locations and other pertinent information on the website. Before sending merchandise, merchants must verify that the location of the buyer matches the info on the consumer’s credit card and shipping address.

Receiving the Wrong Product

To fight this charge, some merchants have video or still images of all products shipped. This is a valid strategy for a business with a physical shipping department. If a merchant doesn’t have a shipping department, photos should be taken of all high dollar orders.

The eMerchantBroker Chargeback Suite

As online fraud grows more prevalent, merchants must invest in merchant chargeback prevention. eMerchantBroker provides fast and effective merchant solutions that will monitor suspicious activity, notify merchants when chargebacks occur, and provide tools to track suspicious activity and dispute chargebacks. EMB chargeback suite reduces the amount of chargebacks by 15-30% per year.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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