Mobile Phone Tech and Merchant Tech Team Up to Fight Fraud

Apr 09, 2015

Online fraud has become an epidemic in the United States. But now, merchants have a new ally in combating this menace. Smart phones have evolved to the point where they can be formidable allies to exhausted e-commerce merchants. Mobile technology can be used to verify the identity and location of online shoppers.

Oftentimes, online fraud occurs when criminals manipulate their location data to make it appear they are a particular victim and live in the victim’s location. Now services offered by companies like Zumigo Corp., can trump criminal efforts by finding the real consumer’s information and verifying their identity and credit card credentials. Zumigo Corp. uses data from the consumer’s mobile carrier along with information from a credit-reporting agency to help verify consumer identities. This enables an address check to see if the card user’s details match mobile phone ownership details. Geo-location pinpoints the smart phone’s location relative to the computer the person is using to shop. Naturally, if the smart phone and computer are miles apart, the system will flag the transaction as suspicious.

Vendor Whitepages provides a similar service called “Speed to Clear.” This company’s partners include several mobile carriers and the U.S. Postal Service. The service uses data records to make a linked record used to verify the identity of consumers. Once the service goes international, it will mostly rely on email addresses, mobile-phone data, and social media for verification checks.

Mobile and merchant professionals believe that teamwork can solve the current fraud crisis in America. Chief Operating Officer of Chargebacks911, Monica Eaton-Cardone, believes that collaboration gives merchants the opportunity to look at the entire equation from the time of purchase to purchase disputes. A look at the bigger picture will give anti-fraud professionals access to more information and help them develop better ways to prevent fraud, and reduce profit draining chargebacks.

Is your business protected against fraudulent e-commerce transactions? is one of the few payment processors that can monitor your high risk merchant account, and keep it safe from fraudulent activity. Our account managers are trained to recognize and prevent criminal e-commerce behavior.

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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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