Merchants Can Protect Themselves with Chargeback Insurance

Apr 14, 2015

Those who keep up with ways to keep their e-Commerce companies profitable will have looked at several chargeback insurance providers. A chargeback is protection for the customer which is offered by issuing banks. This allows a cardholder to file a complaint regarding fraudulent transactions on his billing statement. Once the cardholder files a dispute, the issuing bank makes an investigation into the complaint. Customers may not be aware of the concept but issuing banks are more aligned with consumer loyalty than merchant loyalty. Chargeback insurance providers are more merchant-friendly.

The major factor in chargebacks is the lack of communication between the issuing banks and the merchants. In 58% of all cases the merchant is never involved. This means that a third party is making the decision on whether or not to honor the sale without merchant input. When a merchant has chargeback insurance he is contacted about the customer complaint and has an opportunity to save the sale, issued a refund or credit which does not affect his chargeback ratio, or agree to the chargeback.

There is another benefit of communicating with chargeback insurance providers and that is when a major company is under a cyberattack. Generally the breeches have been with larger retailers because the opportunity is there to steal an ocean-full of customer information. Chargeback insurance providers keep track of unusual sales or unusual trends. Say you receive a call ordering 100 of a certain item. In real time, the software analyses that the customer never purchased more than one. This could be a case of a stolen credit card. Before you can complete the sale, and you do want it badly, the insurance company tells you the sale is questionable.

Another incident may be that the real card holder uses the card about three times a month. The software catches that it has been used five times a day for the past week. While the sale could be legitimate, it will be flagged until it can be determined if it is being used by the owner – or if the card has been stolen. While you are not the source of the data breech, you can protect your company from thieves who have stolen cards or identities.

EMB offers chargeback insurance to its customers, whether you are a high risk or conventional merchant account. Settling up a merchant account has never been easier and you can be approved in as little as 48 hours. There is never an application fee and processing fees are some of the lowest in the industry.

If you want a merchant account where you can take advantage of chargeback insurance, choose the chargeback insurance provider that keeps an outstanding A+ record with the BBB.

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 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.