As we speak, the United States is getting ready to undergo a major shift in how it technologically equips its credit and debit cards. EMV or Europay, MasterCard, and Visa, is a new fraud deterring chip embedded within debit and credit cards. This new chip has become mandatory for all card distributors as an effort to stop credit card fraud, but could affect your high risk merchant account.
EMV Technology and Merchant Liability
Almost half of all credit card fraud occurs in the United States. Most major markets around the world already use EMV, however the United States has previously stood its ground by sticking with the magnetic strip. However, the recent Neiman-Marcus and Target counterfeit debacles, have pushed for the usage of EMV chips instead of the classic magnetic stripe, which are easy to duplicate. Starting in October 2015, businesses will be responsible for having EMV reading capabilities to ensure consumer financial safety. This means, that if a credit card owner’s card is stolen and used at you high risk business, you will be responsible for assuming the costs if your high risk merchant account does not have EMV card readers.
High Risk Merchant Account with 1st American Merchant Funding
Do you run what is referred to as a “high risk” business? High risk businesses include but are not limited to the following businesses:
- Adult – All types
- Credit Repair
- Sports Betting Advice
- TMF Merchants
- Travel & Timeshare
- E-Books & Software
- Firearms – Online
- High Ticket & High Volume
- MLM & Bizops
- Collection Agencies
- Cigars & Pipe Tobacco Online
- Debt Consolidation
- Electronic Cigarettes
- Penny Auctions
- Ticket Brokers – Online Tickets
High risk merchant accounts have an extremely difficult time finding credible lenders and card processors, and with the liability shifts that EMV has instigated, leaving your high risk merchant account in the hands of amateurs or unreliable processors could mean financial ruin. Avoid fraudulent activity being conducted at your business with 1st American Funding. We have EMV reading technology along with close working relationships with all of the top payment processing companies in the country. This means your business will always be protected from fraudulent card activities.
Click below to start your EMV compliant high risk merchant account today!