Chargeback Protection Helps Defend Businesses

Jan 08, 2019

Protect Your Business from Fraud

One of the biggest ways for your business to lose money is to not work to fight real and friendly fraud.

If you do not keep them under control, your business will be looking at a lot of chargebacks, which is when a card issuer requires a merchant refund a disputed or fraudulent transaction. Too many chargebacks will not only negatively impact your business’ future, but it can force a merchant service provider to stop your ability to accept and process debit and credit cards. Businesses with excessive chargebacks can have their merchant accounts terminated. It also could have you paying higher fees and rates to process cards. With all of these looming consequences, find out what you can do to prevent them.

What Is Real Fraud and Friendly Fraud

Most chargebacks are from criminal fraud and friendly fraud. Criminal fraud is when a person makes an unauthorized purchase or something is bought with a stolen credit card. Friendly fraud is when a consumer has buyer’s remorse or claims a product or service was not received to avoid paying for it.

Ways to Limit Fraud

Mobile and online businesses, high-risk merchants, and others are especially susceptible to fraud, which means they need to take whatever action possible to prevent it. Here are some steps that can be taken:

  • Ask for All Credit Card Information: Have consumers submit full names, addresses, and their cards’ expiration dates, as well as the security codes on the back of their cards, to ensure it is legitimate.
  • Have a Valid Return and Refund Policy and Make Sure Customers Know It and Understand It: Consider including your refund and return policies in the same email that confirms a purchase or offers updates about shipping to a customer. This way customers know how to proceed if they need to make a return or exchange or want a full refund.
  • Know What Fraud Looks Like: Shipping and billing addresses that don’t match are red flags. These are signs that purchases may be being made with stolen credit cards.
  • Maintain Detailed, Accurate Records of Your Customers’ Shopping Behaviors: Keep records of customers’ purchase dates, amounts, and authorization data. By maintaining these records, you can use them to compare against future transactions. For example, if a consumer goes from making a $75 purchase every other month to charging $500 a couple of times per week, this is something that should be looked at closer. Organizing and reviewing your customers’ buying habits is one of the most effective ways of catching on to fraud.

The Final Thought

Reducing fraud is essential to keeping your business in a good place. Combating fraud keeps cash flows strong and allows you to remain focused on your inventory and the customer experience. With the right solutions in place, you can put your business in the best possible position.

Getting chargeback insurance is one way to protect your business. It protects a business if a transaction was made via an unauthorized credit card. Another option that is proven effective a chargeback mitigation program.

When you are looking for a merchant account provider that takes chargebacks seriously, then turn to (EMB). It offers a chargeback mitigation alert system, Chargeback Shield, that can help you reduce chargebacks by 25%. By partnering with Verifi, its Cardholder Dispute Resolution Network (CDRN), and Ethoca’s alert system, EMB has been able to offer an alert system that allows businesses to resolve credit card transaction disputes directly.

If you are looking for a processor that will help you trim down your chargeback ratios, then consider EMB. It specializes in working with high-risk merchants, and it makes the merchant account process simple and fast. Apply online today.
*Chargeback Shield is not an insurance service. EMB does not sell insurance and Chargeback Shield is not insurance; it is an alert system.

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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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