Its the Season for Chargeback Protection

Jan 21, 2016

The holidays are a special time to enjoy the company of family and friends. But not everyone is spreading peace and holiday cheer. For criminals, it is the most wonderful time of the year for fraud and your customers could be next if your organization is not ready. Chargebacks911, a Tampa-based chargeback-management firm, recently released a list of American cities on the East Coast with the highest chargeback rates. Businesses in these areas should beef up their security efforts this year.

New York comes in first with Port Washington’s chargeback rate at 17 percent. Astoria, N.Y. came in at 15 percent, Plainview, N.Y. (13 percent) and variety of cities and towns experienced an average chargeback rate of 12 percent (East Elmhurst; N.Y, Danvers, Mass.; Albany, N.Y; Carteret, N.J.; Point Pleasant Beach, N.J.; Massapequa, N.Y.; and Philadelphia, Pa.).

Monica Eaton-Cardone, COO and co-founder of Chargebacks911, warns online merchants to pay close attention to chargebacks and to use it as part of their risk management strategy. High chargeback rates will slowly drain a business of its profits and make it difficult to attain loans from financial institutions. In addition to lost profits and merchandise, online merchants will also face additional fees if they exceed the 1-percent rule set by banks.

Businesses must be proactive to protect customers and profits. Merchants need to upgrade their POS terminals with chip-and-signature or chip-and-PIN functionality to protect themselves against liability for card-present fraud. In addition to security, merchants can counteract the negative effects of chargebacks by enacting proactive solutions to boost profits. Gift cards are a very profitable piece of merchandise for merchants. If merchants deal in gift cards, they should find payments providers that offer processes and support services that enable fast processing and bigger profits.

Is your business prepared for the holidays? Merchants can easily increase their profits and protect their customers by taking a proactive approach to chargeback prevention. EMB offers quality merchant chargeback protection. EMB offers Chargeback Shield, a program that reduces the frequency of chargebacks by 15-30%.

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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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