Keep Chargebacks from Killing Profits

Oct 13, 2015

If you accept credit cards, preventing chargebacks can be a challenge. Chargebacks happen when your customers dispute a credit card transaction. 58% of the time, merchants aren’t even notified that customers have demanded their money back. This means that merchants are unable to investigate or even challenge fraudulent chargebacks until it is too late. But there are some policies and processes that merchants can enact to keep profit sucking chargebacks to a minimum.

Recognize the Risks

Some merchants don’t believe that chargebacks are an issue, but too many can be extremely damaging to merchant profits and reputations. In a time of e-commerce and card-not-present transactions, chargebacks have the potential to get out of control. However, exercising preventative measures and monitoring transactions daily will keep chargebacks to a minimum.

Invest in Monitoring Systems

The best defense is a good offense. In order to prevent chargebacks, merchants must invest in infrastructure that monitors suspicious transactions. There are software programs that track suspicious activity. If a customer engages in suspicious activity, systems will notify merchants.

Learn to Investigate Chargebacks

Business owners have the power to conduct their own investigations. When chargebacks occur, begin with the reason code and review transaction data. Most of the time, merchants can find the proof that they need to fight chargebacks with a simple search. People who commit fraud often leave behind clues like mismatching billing addresses or the ordering and returning of the same item. Train and assign a few people at your company to spot any of these clues.

Work With Your Processor

Use your credit card processor to access resources that reduce your risk of chargebacks.

Experienced online payment processors like EMB, have complex and effective programs that prevent and detect suspicious activity. Chargeback Shield is a specialty chargeback suite from EMB that tracks, monitors, and alerts companies whenever chargebacks are filed. Merchants now have the opportunity to prevent and refute chargebacks in a fast and efficient way.

eMerchantBroker is a credit card chargeback protection provider. We have fast and effective merchant solutions that have made them a leader in the chargeback prevention industry. Their chargeback suites have been known to reduce the amount of chargebacks by 15-30% per year.

Let us help you get a high risk merchant account 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 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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