Increased Security Can Help with Chargebacks on High Risk Merchant Accounts

Oct 10, 2014

It appears that we cannot go a full week without hearing about hackers stealing credit card numbers, pin numbers, and personal data of those who have used their credit and debit cards at large retailers. Now it seems that the fraudsters have hit a huge fast-food chain, Dairy Queen, which has 395 stores in the U.S. This can be really bad news for high risk merchant accounts.

High risk merchants are plagued with chargebacks. Dairy Queen is not what anyone would consider anything close to a high-end chain. This means that the accounts that were hacked were predominantly John Q. Public – the lower and middle classes. This fraud took two months to be discovered.

Cyber attackers are very slick. When the credit card industry plugs one hole, the crooks dig two more. MasterCard International has announced a brand new level of security for all users of their cards and all the merchants and processors who accept them. When card users are polled about their biggest concern, safety is always number one. With that in mind, MasterCard has introduced a program called SafetyNet.

One of the major benefits of SafetyNet is that it can stop fraud or attacks before it is noticed by humans. It will identify fraud in real-time and decline a transaction before any exposure takes place. For high risk merchant accounts, this means potential chargebacks will be declined at the point of sale and there will be no hiccups in the merchant chargeback percentage based on these potentially fraudulent charges.

According to MasterCard this new level of security and protection “monitors different channels and geographies, and provides the most appropriate level of support for each market and partner business, by using sophisticated algorithms.” Naturally, they are not going to give specifics that hackers can learn to break into the multi-level firewalls.

MasterCard also says “For the consumer, there are the security tools you can see including the EMV chip on your physical card or the SecureCode screen when at your online checkout. Through the launch of SafetyNet MasterCard is taking further steps to secure the payment data and transactions at both retailer and issuer.

So many high risk merchants have been going overseas to get a processor to approve their high risk merchant account. Conservative US processors and large banks will not touch the account. However, if a merchant can keep his chargebacks under a 3% threshold, there is a high risk specialist in the U.S. that can have you approved within 48 hours. The rates are nothing like the ones charged by overseas processors. And settlements can be in your checking account as soon as the next business day.

For those who already have a costly high risk merchant account or those wanting to open a new account, there are no application fees or setup fees. In addition, you do not have to have a personal Visa or MasterCard license.

To get approved for a high risk merchant account in as little as 48 hours, contact us today!


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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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