You Can Be in Control of Your Financial Destiny with Chargeback Insurance

Nov 12, 2014

You are well aware that you are a high risk merchant. And more than likely you are also aware that you chose an industry that sees more than its share of chargebacks. This is what has earned you a high risk rating. How the card associations rank certain industries is out of your control, but you can control your high risk merchant account with new chargeback insurance.

You insure your automobile. Only an irresponsible person drives without it. You insure your home and its contents. If you are a renter you insure your personal property. You insure your health and you also insure your life. Why not insure your business?

Merriam-Webster defines insurance as ‘coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.’ If you look at this from a purely economic standpoint, your sales are in peril from customers claiming that they want their money back for one reason or another. Some reasons are valid while others are not. What is true is that more time than not you, as the proprietor, are left out of the equation.

When a customer files a chargeback complaint it can cost you almost $270 when you take everything into consideration. Ten chargebacks a week costs $2700 and a year’s worth would be over $140,000. Wouldn’t you like the opportunity to add this back to your bottom line?

Here is the rub. A customer makes a purchase and decides it is not what he expected. He calls his credit card issuer and complains. The card issuer never lets you know. The first inkling you have that there is an issue is when you get a chargeback fee 60 days after the sale. Chargeback Insurance puts you back in the driver’s seat because instead of issuing a chargeback, with this insurance you are contacted immediately. You have the option of trying to resolve the issue with the customer. Perhaps you decide to give him a refund. A refund is not a chargeback.

If you have your high risk merchant account with the right processor, Chargeback Insurance is available to you. One such processor has teamed up with  Verifi and Verifi’s new Cardholder Dispute Resolution Network (CDRN) as well as Ethoca and their alert system. This network kicks into action as soon as the customer notifies the bank of a dispute and the card issuer acknowledges that it involves a merchant with the CDRN.

Once the CDRN is involved they inform you, the merchant, immediately regarding the dispute. This means that you are in the decision making process. You are able to captain your own ship. Did you know that many chargebacks arise because the customer does not recognize the corporate name on their monthly statement? Many of these examples are stopped before they can go any further.

If you have a high risk merchant account and need a processor that offers a Chargeback Suite, there is an expert who charges no application fees and no set up fees. You do not have to have a high credit rating and you do not have to have your own Visa and MasterCard license. Processing fees are among the lowest in the high risk industry.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat