Payment Options for Businesses Declared High Risk |Merchant Chargeback Protection

Oct 13, 2016

“Chargeback”. That dreaded word that every merchant hates. Whether you sell e-cigarettes or DVDs, you know that terms and hate it. It is the end-all of many merchants, unfortunately, but it doesn’t have to be. Chargebacks cost you extra funds, and at times even your merchant account, leaving you without any way to process checks and plastic payment cards. You need the right team to help you manage your chargebacks – and not all merchant account providers can do this.

You need to look for a merchant account provider that offers merchant chargeback protection. EMB, for instance, offer up their Chargeback Shield to help merchants sort through and better understand their chargebacks. Chargeback Shield is not an insurance service. EMB does not sell insurance and Chargeback Shield is not insurance, it is an alert system. CBS’s Cardholder Dispute Resolution Network (CDRN) is powered by Verifi and the Ethoca alert system. Since it is not insurance, you are not “insured” against any chargebacks, but rather you are better informed of the process.

With the typical merchant account, you are alerted of a fraudulent charge… and that’s it. Well, until you are hit with the chargeback fees. With chargeback protection, you can be informed every step of the way, which is important to gauge the issues involved with the chargeback. Was it a legitimate fraudulent charge? A returned item? Or was it simply a forgotten purchase or subscription? This occurs often with subscription-based services, and since subscription box merchants are a growing industry, this is especially important to them. Also, it is important to anyone who has an automated payment system, such as a bill collector or a magazine service.

Perhaps your merchant account provider offers up a similar program. Inquire about it, regardless the industry you are in. We are all subject to chargebacks, and if you sell of online, your risk jumps enormously. If your current merchant account provider does not offer any type of chargeback insurance, you may consider looking for one who does. Your merchant account – and your funds – are important to you, and you should be able to keep as much as both as possible.

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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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