Prevent CNP Chargebacks

Apr 19, 2016

An increasing amount of consumers prefer to shop online. While this option is extremely convenient for consumers and merchants, it is also advantageous to fraudsters. As merchants move online, there has been a drastic increase in card-not-present fraud. Chargebacks can result from card-not-present fraud and slowly drain merchant profits. Chargebacks happen when a customer makes a legitimate purchase, but then disputes the charge in the hopes of getting their money back and keeping the purchase. Most merchants don’t catch chargebacks in time before complainants receive their money back. Not only do merchants lose the sale, but they are also penalized by their card networks when too many chargebacks happen. This can be extremely detrimental to merchant profits in the long run.

Every card-network demands that merchants not exceed a certain percentage of chargebacks. An excessive amount of chargebacks can indicate a few issues like: non-adherence to network rules, fraudulent transactions not being canceled, or customer service. When a merchant exceeds the allotted amount of chargebacks, the network my put the merchant on an excessive-chargeback monitoring program and penalize the merchant for additional chargebacks. If a merchant is placed on a program, it could keep them from accepting certain types of credit card brands.

Visa and other major credit cards have excessive-chargeback programs. Visa has a domestic program called U.S. Merchant Chargeback Monitoring Program. The other is an international program named the Global Merchant Chargeback Monitoring Program. Each program sets their own requirements depending on geographic regions. Before choosing a card-network, see what their chargeback thresholds are.

Prevent chargebacks from sucking the profits out of your business with EMB’s Chargeback Shield powered with Verifi, Cardholder Dispute Resolution Network (CDRN), and the Ethoca alert system. As a result, EMB’s Chargeback Shield has reduced the frequency of merchant chargebacks by 15-30%. Our Chargeback Shield provides a specialty chargeback suite that monitors, tracks, and alerts merchants of any chargebacks filed. Merchants can relax knowing that this powerful system is protecting their assets. Let competent merchant account protection keep your business on track in 2016. Apply for a merchant account with EMB 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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