Spike in CNP Fraud Bad News for Online Dating Sites

Dec 29, 2015

According to ACI Worldwide, the online fraud attempts rose 30% from 2014 to 2015. This spike was expected by analysts who referenced trends seen in Canada. When Canada migrated to EMV between 2008 and 2015, CNP fraud increased by 133% at the same time. ACI Worldwide shows that from January-to-July, fraud attempts in America went from 1 out of every 114 transactions to 1 out of every 86 transactions. Approximately every dollar in fraudulent transactions will cost merchants $3.08. And CNP fraud is estimated to double to $6.4 billion by 2018. If merchants believe they have time to beef up online security, they are very wrong.

Analysts believe that 2015 will be the riskiest season that retailers have seen. As merchants move to EMV chipped cards, fraudsters will increase online fraud attempts as card-not-present fraud will be simpler to execute than debit and credit fraud in an EMV world. With EMV, a small micro-chip is embedded into a debit or credit card that makes a unique code for every transaction. Aité estimates that 70% of U.S. cards will be chipped by the end of the year, and 98% by 2017.

Card-Not-Present fraud will affect every merchant that sales merchandise online. But some types of businesses could be more affected than others, and have worse consequences for card owners. Extreme consequences of online fraud were experienced by members of the adultery website, Ashley Madison. A few months ago, a group of hackers penetrated the infrastructure of the website and took the personal information of 37 million members. While the website quickly regained control of the system, the credit card numbers of 37 million subscribers were exposed and could have been copied.

If you are an online dating merchant that accepts online payments, you must invest in online security measures or be vulnerable to fraud and chargebacks. EMB provides merchants a full suite of fraud prevention tools through Chargeback Shield. Chargeback Shield will defend your online dating merchant account, while you concentrate on customer service. If your chargeback rate is less than 3%, EMB can help you expand your profits with premium adult processing services.

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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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