CNP Fraud is Our Newest Threat

Nov 23, 2015

Maybe thought that the implementation of EMV cards was the end of our fraudulent charge fears. Not so. While EMV cards are safer with in-person usage, they have opened up a few can of worms when it comes to CNP fraud. CNP, or card not present, fraud is still possible with EMV cards, and it is quickly becoming a hacker’s new way of getting access to one’s plastic payment card.

CNP fraud has been around ever since plastic payment cards first started being used for online purchases. It only takes a card number, a security number, and the expiration date – all three are printed on the card – to purchase something with a stolen card. While this is dangerous for customers and merchants, there are things that a merchant can do to minimize the damage for all.

First off, be sure to examine your sales. You should already do this, but a reminder helps. Another way to combat CNP fraud is to make it mandatory that a phone number and email address be used when someone places an order. If something seems “off”, give the phone number a call to verify the order. A good tip is to look over PO Box orders where the billing address is different, as well as international orders where the billing address is different.

You also need to make sure that your merchant account is up to task. These new card changes have the processing industry scrambling to keep up, and not all processors are doing a great job. If you are involved in a high risk industry, or have previous chargebacks, you should look for a high risk merchant account provider, like EMB. Not only is a high risk merchant account provider better equipped to handle any issues that may arise from CNP fraud. Like with many things in life, all high risk merchant account providers are created equal. Be sure to research your options, because a merchant account is one of the most important things you will obtain for your business.

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