Target Breach Reporting – Why Is It So Important?

Jan 17, 2014
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Target Brands Inc.’s recent high-profile data breach has certainly sparked lots of attention from both the press and the general public. The controversial breach occurred at its stores during 2013’s holiday shopping season, from November 27th until December 15th. It is reported that over a staggering 70 million customers were victims of the breach, having the vast majority of their personal information stolen. Target originally estimated that the number of victims was 40 million, but how wrong were they?

After reporting the breach, it will now be a long and expensive process for Target to regain its reputation (if it ever will, that is) and get to the bottom of why the breach happened in the first place. As well as the legal costs, a thorough investigation must be carried out to pinpoint the source of the breach, which may take a very long time.

Not only this, but Ross Federgreen, founder of the data security firm that is CSR, said that data breach reporting usually costs retailers $10,000, at a minimum. It is the law that businesses must notify federal, state, local and sometimes international agencies, whenever there is a breach. Although many small and middle-sized companies ‘sweep breaches under the carpet’, Federgreen says that “failure to report is a big deal item” and includes “very serious dollars” in penalty fees. Large companies, like Target, can afford to have breach response teams, but small companies do not have this luxury. This highlights why breaches are often ignored within these types of businesses.

Despite this, breach reporting is still a big deal, and should never be avoided. With sky-high fees, class-action lawsuits, loss of sales and reputation and, finally, possible criminal or civil prosecution, avoidance of reporting a breach is simply not worth it. Although a breach probably shouldn’t have occurred in the first place, they do happen, and companies should be prepared to deal with them if and when they do.

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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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