U.S. Slow To Adopt High-Tech Credit Cards

Feb 12, 2014

Since the recent theft of millions of Target’s customers over the holiday season, the topic of America’s slow progress in adopting high-tech credit cards has regularly been discussed by the public. Unlike Europe and other places around the world, America has not yet deployed the safer, secure and modern credit cards.

The USA is a staggering 10 years behind Europe in developing the use of credit cards with a computer chip and advanced security software. Although many major banks and retailers have begun to supply the cards under pressure from credit card companies, we’re still a long way off. Because the United States is such a large country, these high-tech credit cards could take years to reach critical mass. Plus, with conflict over who will be responsible for the huge $8 billion bill, the situation is still very much up in the air.

Despite this, it surely has to be recognized that credit card fraud has doubled since chip cards began use in Europe. Due to America’s lack of speed in adapting to modern credit card use, the financial safety of its citizens is at threat, with scammers choosing America as a target because it is simply easier than everywhere else. Unlike cards with chips, hackers are quickly able to obtain data from magnetic strips. With this data, they can produce counterfeit cards, make false purchases and come up with a variety of other identify-theft techniques.

Even though the shocking home truths of America’s dated and potentially unsafe credit cards is coming into light, payment risks expert Douglas King still said that fraud in the United States is so low that the business benefit of chip cards “had yet to fully crystalize”. Not only this, but Carolyn Balfany of MasterCard Worldwide says that “the U.S. is the largest and most complex market to move” when it comes to adapting to modern-day credit cards.

Overall, it’s certainly obvious that the USA should have introduced high-tech credit cards long ago. Perhaps if we had, we would now be in the same league as Europe in terms of financial safety. Despite this, it is important to recognize that major banks and retailers are now supplying cards with chips, which is definitely a start.

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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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