Online Fraud During the Post-Holiday Season. 3 Things To Focus On

Jan 10, 2017

Each year, during the holidays, fraudsters plan how best to use the season for theft. There were three important things to take into account with regard to fraud during the holiday season in 2016. The fact is that fraud is rising, it’s going mobile, and may result in poor customer experience.

First, online fraud has been on the rise in the past year. It was expected that online fraud would increase after the date of EMV liability shift. Fraudsters knew that card-present fraud would become more challenging, so they had to move ahead of their “competitors.”

According to the Global Fraud Attack Index, online fraud attacks in the United States grew 26% in the 2 quarters after the October deadline date. The number of merchants having switched to EMV has risen and the number of fraudsters having moved online as well. So merchants have to be careful during the holiday season.

It is highly important for merchants to apply to a reliable payment processor like for secure payment processing. EMB is the #1 high risk processor in the United States and has an A+ rating with the BBB. EMB is rated A by Card Payment Options and is one of Inc 500’s Fastest Growing Companies. EMB offers the best fraud prevention and protection programs in the industry.

Second, according to Aite Group, the growth of online commerce market is becoming more and more based on mobile retail commerce. Ecommerce is on the rise and the mCommerce is growing more rapidly. Unfortunately, mobile creates more options for fraudsters as compared to other channels.

During the 2016 holiday season, more fraudsters started looking for more opportunities presented by mCommerce. It became important for retailers not tracking fraud by channel to start doing so without losing time. As for retailers who were tracking fraud by channel, they had to work to track and understand holiday mobile norms for good and bad customers.

Third, during this holiday season, retailers had to focus on speed and increased accuracy. Speed requires extensive automation to avoid the delays brought about by manual reviews and provides smooth shopping experience. A high level of accuracy results in excellent customer experience as it helps good customers avoid being caught in the net and rejected and also fights fraud effectively.

Retailers should perfectly know all aspects of their website and the way customers interact with it so to prevent fraud without ending up with poor customer experience. They should also be well aware of the payments ecosystem and how fraudsters can use it. Finally, retailers should put all these together to stop fraud when providing seamless experience for good customers.

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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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