Prevent Chargebacks with EMB

May 19, 2016

Since EMV technology has saturated the American market, some merchants have been concerned about its impact on CNP fraud – and they should be. A recent report from Juniper Research projects that CNP will reach almost $25.6 billion by 2020, this is $10 billion more than previously predicted. For online merchants, CNP fraud can have a severe impact on profits. But there are ways that online merchants can protect their customers and profits from CNP fraud in the years to come.

The United States is years behind the EMV trend. 80 plus countries have implemented EMV chipped cards, which have effectively decreased fraud at the POS. But these countries warn that EMV won’t stop fraud, it will only move it to less secure online spaces.

According to ZDNet.com, data from France, Australia and the UK, show that in countries where the EMV liability shift occurred in 2005, CNP fraud jumped an unbelievable 40 percent in only 10 years. However, these countries have now developed precautionary guidelines that will combat CNP fraud, and keep your online businesses booming. The following are a few best practices for merchants who want to protect their assets.

Ask for More Billing Information:

Many companies don’t want to chase away potential customers with too many security questions. While conversion rates are important, not asking enough questions can open up your business to fraud. Go beyond the basics and ask for more distinctive information like the CVV, customer address, billing address.

Effective Dunning Will Reduce Churn:

Most declined transactions occur because of expiration dates, invalid card numbers, or inaccurate CVVs. However, a decline can also be related to suspicious activity, a suspended card, or various other reasons. Dunning occurs when merchants resolve billing issues with customers prior to account cancellation. Dunning involves increased communication efforts, and setting up email systems that notify customers if their card on file will expire soon. Give customers every chance to update account information before the next scheduled transaction.

Security is a Deterrent to Fraud:

Make security your top priority. Always use SSL encryption when dealing with account information and always use HTTPS. Plus ensure you are PCI compliant.

Utilize Payment Gateway Policies:

Credible payment processors prevent chargebacks through fraud detection and prevention programs like EMB’s Chargeback Shield. This specialty chargeback suite monitors, tracks, and alerts merchants when a chargeback occurs, through a partnership with Cardholder Dispute Resolution Network (CDRN), Verifi and the Ethoca alert system. Apply for an EMB merchant account today and get chargeback coverage right away.

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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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