Merchants, You Need Chargeback Insurance!

May 22, 2015

There are plenty of things that businesses can do without. From uber-fancy display cases to expensive (but not logical) equipment, there is always something that you think you need, but really do not. Things like this can put a business into a financial mess, and this fear and leave all merchants fearful of investing in anything new. While somethings are not worth investing in, there are some that are. Namely, chargeback insurance.

Every merchant that accepts checks and/or plastic payment cards needs chargeback insurance. Chargeback insurance is offered by merchant account providers, but at times it can be hard to find. This could be because you are looking in the wrong place, because many traditional merchant account processors do not offer this technology. You need to look for chargeback insurance at “high risk” merchant account processors, such as EMB. “High risk” processors are geared toward “high risk” merchants, which typically have a larger percentage of fraudulent charges, hence the need to offer up chargeback insurance. “High risk” merchants range from car dealerships to e-cig merchants to even legalized sports betting websites.

One of the biggest issues with chargeback insurance is that many merchants are not sure what it is. Chargeback insurance helps reduce chargeback fees – the fees that are associated with fraudulent charges. If you have ever suffered a chargeback fee, you know that it is massive, often times up to 270% of the original charge! While this shouldn’t seem like a big deal for a few dollars, it is a major deal for larger purchases. While chargeback insurance cannot eliminate all chargeback fees, it can reduce them. This reduction is well worth the insurance, and even if you have not suffered a chargeback you still need chargeback insurance. If the past few years have taught us anything, it has taught us that every business is able to be hacked, and every business is liable to be put in jeopardy thanks to fraudulent charges.

Before signing onto any chargeback insurance plan, you need to check out the fine print. Legitimate processors, such as EMB, will let you know the detail upfront, without having anything come back to bite you down the road. Be smart, and be safe with your business by obtaining chargeback insurance.

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.

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