Merchants That Accept CNP Need Fraud Protection

Oct 13, 2015

As the United States undergoes a transition from magnetic strip credit cards to EMV chipped cards, online retailers and credit card companies are gearing up for a spike in e-commerce fraud. EMV is a standard that has been in effect in most of Europe for years. In EMV, a small micro-chip is placed on the face of the credit or debit card that creates a unique code for every transaction made. Aité estimates that about 70 percent of U.S. cards will be chipped by the end of 2015, 91 percent the next year, and 98 percent by 2017. But as card not present (CNP) technologies take hold on the U.S., fraudsters are expected to raise their game.

As point-of-sale fraud becomes more difficult to execute, CNP fraud in e-commerce will be on the rise. This means that merchants who accept CNP must prepare their CNP channels for this new threat. If they don’t it could cost merchants big time. It is estimated that every dollar in fraudulent transactions will cost a merchant approximately $3.08. Based on an analysis of EMV adoption, Aité Group predicts that CNP fraud will double to $6.4 billion by 2018. Canada’s migration to EMV between 2008 and 2013 can serve as a case study for what the United States could experience. Although counterfeit and lost/stolen fraud decreased by 54 percent, CNP fraud jumped 133 percent at the same time.

As fraud prevention technology becomes sophisticated, so do the tools of fraudsters. The challenge for merchants is the balancing act between fraud reduction and purchase convenience. While merchants must create effective fraud fighting tools, if it takes too much effort to complete a transaction, customers might get frustrated by the hassle and quit. Whatever actions merchants take they must act quickly as consumers accelerate online purchases.

Merchants accepting CNP must have comprehensive merchant chargeback protection. Protect your livelihood and the sensitive financial information of clients with the assistance of EMB. EMB gives all types of merchants a full suite of fraud prevention tools. The Chargeback Shield will defend your merchant account while you concentrate on raising profits. Chargeback Shield takes the risk out of high risk business.

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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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