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.