Selfie Verification Can Save High Risk Merchants

Oct 30, 2015

A rash of cyber-attacks and identity theft has created an urgent need for payment processors, retailers, and financial institutions to utilize better identity verification technologies to protect consumers and their own assets. Major financial companies and merchants have turned to built-in devices in mobile phones to lower instances of identity theft. Selfies are no longer just for posting on social media accounts. Facial recognition has been used to verify identity for years, but now merchants are using it to add an extra layer of security during transactions. Facial recognition can be used by high risk merchants, like those in the firearms industry, to drastically reduce fraudulent activity and maybe save lives.

MasterCard is piloting a Pay-By-Selfie facial authentication that requires customers to authenticate payment by a “selfie” when making online and instore purchases. At checkout, customers must take a photo with downloaded facial recognition software that will allow or disallow the transaction. The scan is then converted into a code for secure transit. This pilot program only involves about 500 customers, but MasterCard expects a wider release in the coming months.

For companies in the high risk market, selfie authentication could significantly decrease instances of fraud and chargebacks. Merchants in the online firearm industry can use facial recognition to ensure that customers purchasing firearms are who they say they are. In the U.S., the ease at which almost anyone can purchase guns online has become a major concern for consumer safety advocates. Websites like Armslist host ads to buy and sell weapons. Users can search for and purchase guns to bypass background checks. With facial recognition merchants can keep guns out of the hands of criminals who often use the financial information of friends and relatives to purchase guns.

But will consumers readily accept selfie authentication when making purchases? Research indicates yes. A recent survey of millennials found that 87% carry their smartphones with them everywhere. Since millennials increasingly demand more from mobile, like healthcare services and shopping needs, they also demand more security measures such as facial recognition. In fact, data from Acquity Group shows that retailers who don’t implement enhanced payment security could lose one-fifth of their customers in the coming years.

All merchants in a high risk industry, like online firearms, must consider enhanced identity verification measures like selfie verification. EMB is a low hassle, low cost payment processor that will partner with merchants to develop and protect online firearm merchant accounts. Our agents will protect customer transactions and increase your profits.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat