Is EMV More Secure For High Risk Merchant Accounts?

Apr 28, 2016

Modern businesses are now accepting both contactless or Near Field Communication (NFC) and EMV (Europay, MasterCard, and Visa) payments. The stage of accepting magnetic-stripe cards is coming to its end. NFC and EMV are considered more secure and authenticated methods of making payments. Let’s compare magnetic stripe and EMV cards to see why smart chip cards are regarded as more secure.

  1. Magnetic-Stripe Cards are Out of Date – These cards have been used to make payments since the 1980s. Now, the US is one of the last countries to be still using mag-stripe cards. For decades, EMV has served as the standard in most countries.

Merchants looking for reputable right high risk merchant account providers should consider turning to EMB. Voted #1 high-risk payment processor in the US, EMB offers one of the lowest rates in the industry, and guarantees top security and reliability for credit card processing.

  1. EMV Cards Prevent Fraudulent Transactions – Countries that use EMV as the standard have witnessed a vivid decline in certain types of credit card transaction fraud. Here is how chip cards combat fraud:

EMV chip cards are difficult to clone. Unlike smart cards, mag-stripe cards are magnetized. When swiping mag-stripe cards, the payment processor reads the magnetic fields of these cards and matches them to the target bank account information. Data of this type is static, which makes it easier for fraudsters to take the information and clone it using a new card.

When it comes to chip cards, the data on EMV cards is not static. The fact that it is constantly changing makes it too difficult for fraudsters to extract it. For this, a fraudster should use the physical chip circuit and get manipulation over things to get the target bank information. Without having a set of high-technology equipment worth nearly $1 million, this can’t be doable. So this isn’t that much realistic for an average fraudster to complete.

  1. Chip Cards Boast Sophisticated Encryption Built into the Chip – Magnetic-stripe cards transfer bank information into the credit card terminal as is. When a chip card is dipped, a secret language is used to ensure sure it’s actually the very person who’s making a payment.

EMV and NFC are designed to make payment processing much more protected from fraud. As a small-business owner, you can use both EMV and NFC for payment transactions.

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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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