Illicit Trade: Danger for the Environment, Law, and the SDGs

Aug 14, 2019

Illicit trade has to do with smuggling, counterfeiting and tax evasion, human and wildlife trafficking. It causes progress to dwell on the dark side, adds to the overall costs and stops the growth of the goals. Just read below to know more about the topic and find a trustworthy payments specialist that can help you avoid online payment processing fraud to the best possible way.

Illicit Trade: A Growing Problem

This a serious and growing threat that does the opposite of what’s meant by the United Nation’s (UN) Sustainable Development Goals (SDGs). It causes a number of severe threats to society.
Specifically, governments and legitimate businesses often suffer from smuggling, counterfeit and tax evasion. Namely, lost tax revenues account for billions of dollars for governments, and legal businesses are being undermined. Besides, products that haven’t been made properly and don’t fall under any regulations create problems for consumers.

By the way, cigarettes are one of the most illegally trafficked goods all around the globe. In the E.U. (European Union) alone, illicit whites’ share of the overall illicit tobacco trade made up 4.3% in 2007 and reached 33.9% in 2016, as the KPMG SUN Report shows.

The so-called “illicit or cheap whites” represents a new type of illegal tobacco products. This is a growing problem in more than one country. The E.U. Commission defines these products as brands manufactured without violating any laws in the given market.

Then, they’re either charged taxes for local consumption or charged zero taxes for export, and sold knowingly to sellers who transport them to other countries where these products are sold through the violation of laws and without paying any domestic duty.

Since counterfeit activities are growing in their number and severity all over the world, it’s critical for eCommerce merchants to work only with secure payment specialists. That’s where credit card processors like step in. The rates offered are the cheapest in the industry. EMB is the nation’s #1 high risk processor that’s rated A+ by the Better Business Bureau.

EMB is committed to providing merchants with unique services that can help you sidestep illicit trade. EMB is dedicated to offering the latest fraud and chargeback prevention services to help you protect your business to the best possible extent.

To find out more about how these products cause huge tax revenue losses for governments and result in security risks, let’s move forward.

Threats of Trading Illicitly

Those who trade in counterfeit goods pose dangers to consumers and causes harm to public health. This is a threat bringing an end to the lives of endangered species and causing devastating damage to ecosystems.

Let’s take people’s trafficking: it’s widespread in a number of sectors vulnerable to such threat, including fisheries, agriculture, manufacturing, and mining. According to the U.S. Department of Labor, 139 goods from 75 countries are produced by forced and child labor: this refers to anything from diamonds, cotton to garments and electronics.

As for the theft of oil and fuel, together with a variety of fuel fraud types are widespread in the growing forms of illicit trade. They’re directly linked to organized crime and terrorist groups.

Today, it’s critically important that governments and international organizations, as well as the private sector, invest in eliminating the problem. The Transnational Alliance to Combat Illicit Trade (TRACIT) and the United Nations Conference on Trade and Development (UNCTAD) have shown how the mentioned threat can serve as suppression of the U.N. Sustainable Development Goals (SDGs) growth in some of the most important economic sectors across the world.

Such threat can put impediments on the way towards achieving the global goals. Targeted global action must be taken, as experts noted at a forum held by UNCTAD and the Transnational Alliance to Combat Illicit Trade (TRACIT) in July.

To sum up, those who trade illicitly cause both economic, social and environmental losses all over the world. This is a growing issue that must be addressed globally. It’s immensely important that countries collaborate to eradicate the roots of the networks making it so easy to trade illicitly across borders.

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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.