E-Commerce Merchants Can Fight Chargebacks

Aug 11, 2015

Chargebacks are bad news for everyone. From the customer having to request their funds, to the business having to cut the funds, to even the merchant account having to deal with the fallout, chargebacks are damaging. While few get through their business lives without a chargeback, the majority of retailers – and e-commerce – will face a chargeback sooner or later. While we all hope for the best, many times chargebacks can come at the worst time for your business, and it can lead to a horrific outcome if you are not prepared.

Up until not long ago, the online business world was not catered to as much as brick and mortar businesses. Thankfully, now that online sales are surpassing some brick and mortar stores, the processing industry is listening. While the online world gets a bad rep for hackings and poor communication, these things are happening more and more with brick and mortar stores. Chargebacks happen everywhere, and since processors are now catering to e-commerce, there is a good chance that you can obtain merchant chargeback protection. This will not stop all chargebacks, or all of their fees, but it can help lessen the blow to your business.

While merchant chargeback protection is something that every merchant should invest in, there are things that merchants can do to help minimize the chances of having a chargeback. First off, be sure to use a fraud prevention tool, such as Verified by Visa or an address verification service. With the latter, you have a better chance of catching fraudsters who use their home address or PO Box, since it will not match up with the information of the card owner.

Another good rule of thumb is to make sure that you blacklist those who are trying to cause trouble. Did you know that you could block a person, an IP address, or even an entire country from your online store? It’s true, and many merchants have resorted to these measures to keep the troublemakers away. While it may seem harsh, you have a right to protect your business from threats that can wreak havoc on your company and customers. Before making any changes, be sure to consult with your merchant account processor, to alert them of the changes you intend to make.

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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 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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