Do Payment Regulations Keep Payments Safe?

Jul 24, 2017

The Federal Reserve has recently released a progress report highlighting accomplishments and anticipated steps regarding the ongoing initiatives to enhance the speed, efficiency, and security of the US payment system.

According to Federal Reserve Board Governor Jerome H. Powell, central banks, financial institutions, and technology providers are focused on protecting payment systems and transactions as sophisticated cyber threats have increased in size and scale across the globe.

The faster payments become, the more difficult it is to protect them and the easier it is for cyber criminals to take advantage of vulnerabilities. The industry has taken steps in this regard by introducing regulations.

Regulations are formal, enforceable security policies developed to prevent fraud and protect organizations and individuals. However, regulations don’t always serve as a remedy the industry would expect them to be. How can these regulations be described?

  1. Uncertain

There are many ambiguities associated with the implementation of payments regulations. This makes them lack the necessary effectiveness.

  1. Out of Date

Regulatory bodies need longer time to write and agree to a common set of rules. As a result, these regulations become out of date by the time they are made public.

  1. Narrow Perspective

The committees establishing regulations usually include financial-services professionals with little representation from corporates, and corporates are increasingly becoming the major users of payments. As a result, the created rules lack the necessary representation of everyone’s needs.

True security can be achieved only when organizations go beyond what is required of them and aim at securing each and every payment. Organizations should focus on stopping fraudulent transactions before they happen, otherwise they can hardly get them back.

It’s critical for merchants to turn to a reliable and trustworthy payment processor like for a safe and low-cost high risk merchant account. EMB is voted the #1 high risk processor in the US and boasts an A+ rating with the BBB. In partnership with Verifi and Ethoca, EMB offers unmatched chargeback prevention and protection services to merchants of any type. Moreover, EMB is rated A by Card Payment Options and is named one of Inc. 500’s Fastest Growing Companies of 2016.

Regulations shouldn’t be taken as the only means of protection. Even if an organization meets the minimum standards, this isn’t enough to keep payments safe and stop creative criminals. Going beyond the minimum is a must if you need to avoid the financial losses and reputational damage brought about by fraud.

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.