Chargeback Protection is a Must for all Merchants

Aug 21, 2015

Chargebacks are one of the worst things that can happen to a business. The word alone can lead to shivers down a merchant’s spine, along with some choice words. While no one wants a chargeback, they happen to most merchants. If you have never suffered a chargeback, consider yourself lucky, however take notice because it is more than likely going to happen to you at some point in time. While chargebacks are typically unavoidable, thanks to a new generation of high tech fraudsters.

For years, merchants have worried about in-store fraudsters, such as those with stolen cards, or those who buy something and then return it after one use. For instance, there are fraudsters who purchase an expensive dress, wear it once, and return it claiming that they never worn it. They may think there is nothing wrong with this, but it can turn your business upside down if you are not prepared. Lately, internet fraudsters have taken control, by using stolen plastic payment cards. When the card’s holder learns of these charges, they call their card provider or bank and they file a chargeback.

A chargeback isn’t as simple as paying the funds back. You will end up paying a fine, and many times it can be 270% of the original charge. This means that a $10 purchase turns into a $27 charge, and a $1,000 charge turns into a $2,700 charge. This can harm any company, especially a new or unprepared business. All merchants need to make sure that they invest in merchant chargeback prevention. While this will not eliminate all chargeback fees, it can reduce them. merchant chargeback protection can also help you and your merchant figure out if the charge is indeed fraudulent, or simply just someone looking to scam to get their money back.

Fraud is on the rise for all merchants, and smart merchants are investing in chargeback protection. This is an absolute must for every merchant, regardless of your industry. By investing in chargeback protection, you are not only protecting yourself, but also your customers, because a low chargeback rate can help keep you from raising product cost.

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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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