Recent Mobile-Accepting Merchants Risk Detection

Jul 17, 2017

Merchants successfully deal with payment methods but have some problems in some key areas. Particularly, they have difficulty identifying overseas transactions, according to recent survey results by a risk management firm.

The survey was conducted online between April and June. More than 800 merchants in some 29 industries participated in the survey. The revenue generated by these merchants ranged from less than $5 million to more than $500 million.

5 years ago, over 55% of merchants accepting mobile payments couldn’t identify whether transactions originated from a mobile device. The number of these merchants has now decreased, reaching 14%. What is more, 28% of merchants accepting mobile payments merchants can’t identify whether a mobile transaction comes from abroad.

44% of the merchants having participated in the survey now support a mobile app for online shopping. The number is up from 21% when the study was first carried out in 2013. The number of merchants accepting mobile payments at the point of sale has increased from 15% to 29%.

It’s interesting to note that 61% consider Apple as the top “safe” mobile-payment technology brand. Next come Android and Blackberry (3.7% each), and Windows (1.4%). 30% answered “No brand.”

It’s critical for merchants interested in mobile high risk payments to turn to a reliable and secure payment processor like emerchantbroker.com. EMB is an award-winning processor and alternative online lender that specializes in the high risk industry and boasts an A+ rating with the BBB. In partnership with Verifi and Ethoca, EMB offers unmatched chargeback protection and prevention services and the lowest possible rates in the industry. EMB, the #1 high risk processor in the US, can help you fight fraud without any difficulty.

Only 8% of merchants today think that the mobile channel is much riskier as compared to traditional e-commerce. The number is down from 14% in 2016. Merchants trust mobile wallets. More merchants believe that fraud will decrease instead of increasing as the number of consumers adopting mobile wallets is growing.

For the first time, the survey revealed what merchants think about the payment systems and platforms associated with mobile risk. The survey found out that 60% of merchants believe “browser-based” mobile payments are at the greatest risk of fraud. Only 25% of merchants today say that the “mobile channel” is associated with higher risk than “web e-commerce.” About 40% of merchants mentioned that they have seen an increase in mobile channel fraud.

 

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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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