Tag: merchant

High Risk Merchant Processing Considerations and Concerns

High Risk Merchant Processing Considerations and Concerns

Is your business deemed high risk? If so, you probably know how complex and exasperating the underwriting process can be. You may have also realized how difficult it can be to find a secure and reliable high risk merchant processor. This is especially true for business owners in the collections industry where a few persons continue to act unethically and against the regulation.

The presence of these untrustworthy few has caused banks and processors to view high risk merchant processing as a liability. What’s more, third party collection businesses now have limited options when it comes to underwriting choices they can pursue.

If you are unsure of what to expect as a high risk merchant, this article provides helpful information designed to prepare you for this journey. Note, however, that all processors are different. While the general process has the same blueprint overall, certain rules and information may vary from one provider to the next.

Getting a High Risk Merchant Processing Account Approved

Once your business has been deemed high risk, there are a number of factors that determine whether your application for a merchant account can be approved. These factors will also determine how much you will pay in merchant account fees. The underwriting guidelines adhered to by each merchant account provider play a big role here as they determine whether your high risk merchant account will be approved or not.

Longevity in the business is also another important factor. While it is still possible for new businesses to be approved for high risk merchant accounts, a merchant who has a long history of successfully processing credit card payments with another processor stands a better chance of approval. Ultimately, however, the lower your fraud prevention risks and chargebacks, the easier it will be to get your account approved.

Processing Fees for High Risk Merchant’s

 Often times high risk businesses attract quite a bit more than the regular merchant account. In fact, it could cost as much as 3-10 times the fee a traditional merchant account would attract. The fee largely depends on how much risk the merchant account provider will have to take in order to work with you.

As a result of the risks involved, many high risk merchant processors do all they can to tie merchants into signing long term contracts. But you do not need to be in a hurry to accept such contracts as some merchant account providers now offer month-to-month contracts. Though you may not have so much in terms of bargaining strength as a high risk merchant, you must avoid signing a contract that locks you in for the long term.

Long term contracts usually come with hefty penalties if a merchant decides to exit the contract. It would be unfortunate to lock yourself into a deal that doesn’t seem right for many years. So, if a provider tries to lure you into accepting a 3-year or longer contract, it is time to consider other options.

When presented the contract, it is … Read More..

Fraud Trends: Networked Crime, Bot & Mobile App Attacks

Fraud Trends: Networked Crime, Bot & Mobile App Attacks

Based on the recent report from LexisNexis Risk Solutions, some of the fraud attacks grew in the 1st half of 2019. To discover which attacks are currently “trending” and know who can help you with the most reliable and cheapest high risk merchant account, just keep on reading. 

Fraud Attacks: High Risk Merchant Account

The latest Cybercrime Report, LexisNexis’ Digital Identity Network shows 16.4 billion transactions during January – June period. 277 million of them were organized by humans. This number points to 13{4a5789dcd27a1613dee314851edeac5aad088eb5b2e9282c9a512c32eca81752} growth over the 2nd half of 2018.

E-commerce companies also note that bot attacks are on the rise, specifically, new account creation ones. The latter attacks grew 305{4a5789dcd27a1613dee314851edeac5aad088eb5b2e9282c9a512c32eca81752} and are mostly observed in online marketplaces, companies offering virtual gift cards, and ridesharing sites.

Worldwide, attacks on mobile apps grew 148{4a5789dcd27a1613dee314851edeac5aad088eb5b2e9282c9a512c32eca81752} in 6 months with the main focus on media companies, specifically on social media and gaming/gambling companies. This is the space where bad guys register for new player bonuses to sell so to gain profit.

What measure are you taking to protect your business from fraud? One thing is for sure: you can’t do without working with a secure and reliable payment processor in your field. A true payment expert can help you fight fraud by providing the most advanced fraud prevention and chargeback mitigation solutions in the industry. 

With a reputable credit card processor, you can get the safest and cheapest high risk merchant account and other payment processing services to grow successfully. 

Growing Fraud Trends

According to Rebekah Moody, director of fraud and identity at LexisNexis Risk Solutions, hackers are organizing their attacks across industries and companies. Here’re the main growing fraud trends:

  • Bot attacks: hackers are “interested in” transactions associated with the creation of new accounts. 
  • Mobile app registration: this is the result of the growing number of smartphone users.
  • Networked crime: this has to do with confirmed fraud attempts across multiple companies. 

As you see, fraud is still a major problem that eCommerce business owners deal with each and every day. So, it’s critical to work with a true payment processing expert that can help you avoid it as much as possible. 

Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high-risk merchant account processor in the country that offers the most secure and cheapest high risk merchant account in the space. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.
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