Legal Fallout Continues for Target Following Massive Security Breach

Jan 24, 2014
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Target is still dealing with the aftermath of the massive security branch the retail giant suffered during the 2013 holiday session. A computer security breach exposed credit and debit card information for 40 million Target customers during a one week period in November and December 2013.

The breach occurred during the peak holiday shopping period. Sensitive information for millions of customer exposes them to the possibility of identify theft and fraudulent transactions. As a result, customers have begun filing legal complaints seeking damages from Target through class-action lawsuits filed in states around the country.

In Target’s home state, Minnesota, they face a lawsuit, Alonso v. Target Corp., which brings into question Target’s failure to notify customers prior to the security breach being reported in the media. Target’s failure to notify their customers increases the time that they were vulnerable to fraudulent charges and inhibits customers’ ability to reconcile their accounts to track any potential problems.

Target scrambled to generate some efforts of damage control. They responded by assuring customers that they will not be responsible for fraudulent charges and will provide free credit reporting. Additionally, for one weekend victims from the security breach were granted 10% off all purchases at Target. Yet, the conciliatory gestures are not stopping the lawsuits.

Such a large scale security breach into the debit and credit card sector has drawn the attention of the federal government. Target is also working with the United States Department of Justice to investigate the breach. The retail corporation itself isn’t under investigation but the incident itself is according to a statement from Target claiming the company was “actively partnering” with the federal authorities.

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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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