Top 5 Ways to Combat Chargebacks

Jun 09, 2014

From Calling to Chargeback Insurance: How to Keep Chargebacks Away

Chargebacks from fraudulent transactions can hinder your business. These often come as surprises to merchants, as many times the customer’s bank does not alert the merchant to the problem. However, there are ways to help protect your business from chargebacks, from questioning odd transactions to investing in chargeback insurance, and they are easier than you think.

First off, go with your gut. If a transaction seems suspicious, feel free to contact the person listed in the cardholder’s info section of your payment page, just to check it out. If there is legitimately something wrong, cancel out the transaction, and let the cardholder know what occurred. If everything seems okay, well, it is always better to check it out than to face chargeback fees. You can also have a warning posted on your website, stating that all “suspicious” or “questionable” transactions will be contacted in order to ensure the order is not fraudulent. These can include orders where the name and address do not mesh (i.e., an American name with a foreign address), a large transaction, or a lot of small transactions coming from the same IP address, but are sent to various addresses. In addition, the new trend with hackers is to make small purchases with the stolen data, as was found out by the Target data thefts from 2013. When in doubt of any transaction, be sure to check it out.

It is always best to include a section for a CVC or CVC2 code to be typed in before an order is processed. This helps protect from cyber thefts, and many thieves do not have this data. Another tip is to be cautious of foreign addresses that are not military addresses. These addresses should be checked out, especially if they are in hotbed areas for fraudulent activity, such as Indonesia and Eastern Europe (Russia, Ukraine, Belarus, etc.). While not all orders will be fraudulent, again, it is better to be safe than sorry.

It is an absolute must that any merchant, high risk or not, invest in chargeback insurance. is a leading chargeback insurance provider. They have collaborated with Verifi and CDRN, which helps to alert you to chargebacks, as well as save your company money, at times as much as 30% in chargeback fees.

There are many ways to help combat chargebacks, from common-sense methods to chargeback insurance. While chargeback insurance may seem like a hassle, it is always best to be prepared than to suffer the consequences. Chargeback insurance can help save your company money, which is something that everyone loves.

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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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