Electronic Transactions and their Fraudulent Issues

Jan 07, 2015

The rise of electronic and online transactions has resonated with some not-so-good data. While only 8.5% of all electronic transactions take place online, they account for nearly half of all fraudulent claims. “Card not present” transactions are dangerous, yet they are growing every year. While these transactions grow, online merchants need to take extra steps to ensure their accounts are safe.

While there is no stopping online transactions, smart merchants know that there are ways to make sure that the card information entered is not stolen. One big issue with online transactions is that shipments are quick – at times overnight – and stopping a shipment is nearly impossible. One major thing that you, the merchant, can do is to contact the purchaser before shipping. It is always wise to ask for a few types of contact information on the order form, and if the phone numbers provided are not correct, you know that you have a problem. The same goes with payment information registered to a US address, but shipping information overseas.

Online merchants also need to make sure that they have a high risk merchant account. High risk merchants accounts are better prepared to deal with any fraudulent claims that may arise from a “card not present” transaction. A high risk merchant account provider, such as eMerchantBroker.com, can help keep your business steady when a fraudulent charge comes your way. While other merchant account providers will dump a company after a fraudulent charge, as we at eMerchantBroker.com do not. We will work with you to determine if the charge is indeed fraudulent. We can also help you keep your chargeback costs down. Chargebacks can damage even the most profitable small business, due to the fact that their fees can be upwards of 270% of the original charge. For more information about chargebacks and a high risk merchant account, contact us below today!

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