Prevent Chargebacks with EMB

Feb 11, 2016

This past Black Friday saw the highest volume of online traffic in history. This trend is predicted to continue in the years to come, as consumers are exchanging long lines and toy grabs for the convenience of shopping online. But along with this convenience is the surge of online fraudulent activity. Merchants that sell merchandise online must protect their websites and customers from online fraudsters. Not only will diligent fraud prevention protect your customer’s information, it was also protect your business from chargebacks.

Chargebacks91, a Tampa-based chargeback-management firm, recently released a partial report of all U.S. cities with the highest chargeback rates. Merchants that operate in these areas, or who have a large amount of clientele that live there should be on the lookout for suspicious activity. Thus far the report shows that the East Coast has the highest chargeback rates. In first place was New York, with Port Washington’s chargeback rate reaching 17 percent. 15 percent of chargeback came from Astoria, N.Y., followed by Plainview, N.Y. (13 percent). In addition, a handful of towns reached 12 percent (Point Pleasant Beach, N.J.; Danvers, Mass.; Massapequa, N.Y.; Carteret, N.J.; East Elmhurst, N.Y.; and Philadelphia, Pa.)

Tim Russo, a leader for fraud prevention company Cleverbridge, warns online merchants of the impending increase in fraudulent activity and chargebacks. His fears seem supported. Countries that have migrated to EMV have seen a significant increase in online fraud. In 2005, the UK shifted to EMV. CNP fraud has since increased by almost 40 percent in 10 years. In Australia, CNP fraud jumped 20 percent in only 2 years after implementation.

Businesses must be active participants in fraud prevention. Merchants must equip POS terminals with chip-and-signature or chip-and-PIN to protect themselves from liability if card-present fraud happens. Those online must invest in software to monitor and track transactions.

High chargeback rates will rob a business of its profits. Is your business prepared for this new type of criminal? Take a proactive approach to chargeback prevention. eMerchantBroker offers high quality merchant systems to prevent chargebacks. EMB offers Chargeback Shield, a program that reduces the frequency of chargebacks by 15-30%.

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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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