Riskiest States For E-commerce Merchants

Mar 17, 2016

Experian, data analytics and fraud prevention provider, has examined a large number of ecommerce transactions completed in California, Delaware, Florida, Oregon, and Washington, D.C. These transactions proved to have the highest rates fraud.

The Highest Rates of Fraudulent Transactions

California, Delaware, Florida, Nevada, and Oregon were found to be the riskiest states with regard to fraudulent transactions. The riskiest billing ZIP code was found to be Eudora, Kansas. This is a suburb of Lawrence university city located at about halfway between Kansas City and Topeka.

According to Adam Fingersh, GM and SVP of Fraud and Identity Solutions at Experian, merchants can carefully examine transactions from or shipped to the mentioned places.

Eudora was not on the list of the riskiest ZIP codes all year long until the week of Black Friday and Cyber Monday. This is the time when online traffic increases significantly.

The researched data and the information obtained can help ecommerce merchants avoid card-not-present fraud. It is critical for ecommerce merchants to turn to the right professionals in the field like emerchantbroker.com to secure their business. EMB, the Nations #1 high risk credit card processor, boasts an A+ Rating with the BBB and a #1 rating with topcreditcardprocessorsratings.com.

Why These Cities are Attractive to Fraudsters?

According to Fingersh, Florida is attractive to fraudsters because of several factors. These include its location, population and a large number of transactions completed. All these reasons provide perfect opportunities for fraudsters to take action.

The study revealed that areas close to large ports counted for higher rates of shipping fraud. Florida, and Miami, consequently, is a major center for international commerce. Miami is called the “UN of South America.” Oregon is also a coastal state.

Except for Florida and Oregon, California, Delaware, Georgia, Nevada, New York and Puerto Rico had higher than the national average fraud attack rates.

The report implies that ecommerce fraud is associated both with larger and smaller cities. In fact, fraudulent items can be shipped to anywhere. A reliable payment processor in the industry can help ecommerce merchants open a safe and secure merchant account for their business and fight fraud with ease.

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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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