Preventing Payment Processing Fraud

Dec 19, 2016

EMV chips cards are called to protect merchants from fraudulent transactions. Consumers can get more protections from EMV if the chips are used properly. However, both merchants and consumers still need more protection in several areas.

Today, EMV chip cards are being used by less than 50% of all merchants. Larger merchants choose to swipe because of several reasons, and the main reason has to do with the time required for dipping. Starting from December 2016, scheduled update is being applied to help cut the time required for EMV transactions. The time will be cut in half, and the big stores will be able to use EMV chip cards more easily.

One type of fraud that is being registered on a regular basis has to do with application fraud. In this case, fraudsters use fake or stolen documents to create an account in the victim’s name. So businesses dealing with value cards or offering instore credit card applications must be especially protected from such fraud.

Many businesses enter data into their computers and throw the mentioned applications into the trash. Criminals easily get the necessary information from the trash and create fake applications. So businesses should consider buying and using a micro cut paper shredder which currently cannot be recreated by computer programs.

To pen a safe and trustworthy merchant account, turn to emerchantbroker.com. EMB is voted the #1 high risk payment processor in the US and boasts an A+ rating with the BBB. EMB is one of Inc 500’s Fastest Growing Companies of 2016 and is rated “A” by Card Payment Options.

The second type of fraud the industry sees regularly has to do with the account takeover. In this case, fraudsters use personal information like email addresses to access accounts. This way, thieves change the password and communication settings, and gain control over the account. Today, the identity theft is a huge problem. The black market offers access to an Uber account for $3.78 and to a PayPal account with $500 balance for $6.43. A credit card number sells for $.22 cents.

It is important to protect yourself from all types of identity theft. Do not open emails from strangers. Use a micro paper shredder and don’t forget to monitor your credit reports on a monthly basis.

 

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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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