Hoverboard Merchant and Hip Hop Artist Soulja Boy Targeted by Fraudsters: Chargeback Protection Services

Dec 16, 2015

“We live in a time when if you make it easy for someone to steal from you, someone will.” – Frank Abagnale

Hoverboard merchants have recently been attacked by credit card fraud. Even DeAndre Cortez Way, better known by his stage name Soulja Boy Tell ‘Em or Soulja Boy, an American rapper, entrepreneur, record producer, and actor was targeted by fraudsters.

Hoverboard Sellers Targeted By Fraudsters

Processed credit card orders subsequently disputed by cardholders make internet merchants ultimately liable. Internet purchases may be disputed based on different reasons, but credit card fraud is one of the most common cases.

On Nov. 12, Soulja Boy sent an email to Stripe, a major online payment processor, as his account showed a large negative balance. He was processing payments for the 2-wheeled self-balancing scooters sold for $1,500 on his online store – “Souljaboard”.

According to BuzzFeed News, fraud is widespread among online hoverboard purchases. 3/4 of all hoverboard purchases end up with chargebacks. A Stripe company wishing to remain anonymous states a typical chargeback rate counts for 1%. Moreover, according to BuzzFeed News, some cards have been used to make fraudulent purchases of hoverboards from a number of merchants.

Fortunately, with Chargeback Shield, Chargeback Protection Services offered by EMB, merchants can avoid these types of fraudulent transactions. EMB helps merchants stop them before becoming a chargeback. Choose EMB’s chargeback protection for your business to avoid credit card fraud.

Protecting Your Hoverboard Business With EMB

Chargebacks can count for 270% of lost money on a chargeback. If your business suffers a $100 chargeback, you may end up paying $270 in fees. We’re the nation’s leading high risk payment processor, and Chargeback Shield can protect your business against fraud.

When you open a secure hoverboard merchant account with Chargeback Shield you’re backed by Ethoca and Verifi Inc. With Ethoca, a secure network for card issuers and merchants, and Verifi Inc., a chargeback representment and fraud prevention provider, EMB has developed an unequaled alert and prevention system to help merchants achieve the highest rate of chargeback resolution.

Credit card companies and payment processors such as Stripe offer protection against fraud through algorithmic detection, but merchants get ultimately liable for reimbursing fraudulent charges. Standard card verification value or CVV code and zip code checks for merchants aren’t required by Stripe, although they are allowed.

Both merchants and payment processing companies, in this case Stripe, are being harmed by negative balances, and defrauded credit card companies should be reimbursed. Based on Stripe documentation, very often, new hoverboard merchants aren’t aware of how to control fraud and who should be responsible for this, as in the case of Soulja Boy.

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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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