Credit Card Fraud On The Rise

It is now easier than ever to start an online business, and subsequently it is now much simpler for people to purchase things on the internet. As a result, the risk of falling victim to fraud is constantly rising, according to the Consumer Fraud Task Force. If we look back at 2016, the Better Business Bureau reported that online purchase scams were the fourth-highest during that year.

Credit Card Fraud

That’s why it is now important to perform diligent research before inputting your credit card details. Check whether they are legitimate, trustworthy and genuine before you even consider making a purchase. This will allow you to avoid the gut-wrenching feeling when you part with your hard-earned cash to receive nothing in return.

A recent study compiled by the Consumer Fraud Task Force revealed alarming statistics against a number of businesses through the US. Firstly, a St. Charles County based business have had several complaints filed against them with both the BBB and the Missouri Attorney General. This was regarding a failure to deliver products that had been paid for. Secondly, similar complaints were made against an online clothing business where they took months to complete deliveries.

Furthermore, the Task Force also offered some brilliant tips to avoid credit card fraud when shopping online. These included:

  • Install robust anti-virus software and a firewall
  • Ensure the site is secure – the web address (URL) should start with https://
  • Confirm the sites address, phone number and email address
  • Watch out for hidden costs
  • Always pay with a credit card so you can dispute charges
  • Confirm shipping dates

The Consumer Fraud Task Force that conducted the research is an alliance of local, state and federal government agencies, non-profit business and consumer groups in Missouri and Illinois. They work in harmony to ensure consumers are protected against online fraud and scams.

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622
https://hrma-llc.com

Merchant Liability: Processing Credit Cards

As a small business owner, you’ll no doubt encounter a whole host of different challenges along your journey. However, one that often goes under the radar but can actually incur the most costs is your point-of-sale system. Why? Because if your POS terminal is unable to accept EMV cards (chip cards), then you may fall victim to fraudulent claims or contested transactions.

High Risk Merchant Accounts

EMV is actually an acronym for the global chip standard forged by the dominant players known as Europay, Mastercard and Visa. Back in October 2015, there was an initial surge in the industry to transition to chip technology and this was combined with the emergence of merchant liability. There is going to be a second push this year, and this will only strengthen the pressure on merchants to accept EMV cards.

In fact, October 2017 is the precise deadline for merchants to accommodate EMV cards, and financial responsibility will be fully placed on businesses within all industries. However, small business owners will only be completely liable if a chip card is processed as a mag card, otherwise the responsibility will be on the card issuer.

Now, it is understandable for small business owners to consider their budget and refrain from upgrading a system that seems to work adequately. But, as well as the risks of incurring costs through insufficient technology, you could also be targeted by malicious hackers. Having an outdated system generally means a lesser level of encryption and therefore more likely to be compromised.

All in all, it is wise to protect the longevity of your business by keeping your technology and POS system up to date. This will enable merchants to avoid financial penalties and potential security breaches.

Contact Us:  Call us today if you are experiencing difficulty in getting approved for high risk merchant account, we can help.

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622
https://hrma-llc.com

High Risk Merchant Services [InfoGraphic]

All You Need to Know About High Risk Merchant Services 

Many businesses require a merchant services to operate optimally, but unfortunately many businesses get refused by the traditional banks and providers. The reason for this is down to their area of expertise; see, banks and providers refrain from offering high risk merchant services to companies that present a potential risk to them. For example, if your business is in the alcohol, drugs, gambling, payday loans, nutraceuticals or tobacco niche, then you’ll most likely get denied by the typical banks and providers.

High Risk Merchant Services

These risks are calculated with a number of a different factors; the industries reputation for fraud, your credit rating and whether your business is offshore all comes into consideration. Now, sourcing a provider that is willing to meet your needs and supply you with a merchant account is important to the vast-majority of vendors. But, if your business operates in one of the ‘high-risk’ sectors, this won’t east. However, this doesn’t mean that it is impossible!

Let’s just start by getting some of the negative aspects out of the way. If you’re attempting to get a high-risk merchant account set up, then you should expect to pay a multitude of setup fees. In addition, you should also be prepared for a minimum monthly transaction number, higher transaction fees, a rolling reserve, a longer settlement period and a hefty annual fee. So, that’s the downsides covered!

Moreover, despite the associated drawbacks, there are many processors out there today that make it easier to set up a merchant account. Many of them will work closely with you, so that your needs can be met and your budget isn’t blown. The majority of the time if you are a high risk merchant, you’ll tend to work with a high risk merchant services. Although these are not your traditional bank, they do possess worldwide banking networks to ensure you get up and running quickly.

This is essential, as in such a competitive world such as the one we live in today, being fully operational with an appropriate merchant solution is crucial. If there was a significant period of downtime whilst you got your merchant account set up, that would result in a loss of revenue and potentially a loss of customers. So, when searching for a high risk merchant service, bear in mind their process and the time it takes.

One of the leading services in the current market is High Risk Merchant Account LLC; their service makes it simple for you to receive debit and credit card payments with your online business, even if it is classed as high risk. To sum up their service…they have expert payment advisors who know the industry you operate in, so can easily arrange a merchant account that best suits your needs. Additionally, they currently have more than 2,000 organizations from a range of different sectors, such as financial services, healthcare, accounts receivable, energy, utilities and media under their wing. All of these companies utilize their exceptional billing solutions and merchant account support so their business can grow.

Contact Us:  If you are experiencing difficulty in getting approved for high risk merchant services, call us today  We can help.

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622
https://hrma-llc.com

Same Day ACH: Phase 2 Has Been Rolled Out

Phase 2 of the Same Day ACH Has Been Rolled Out!

 The world is continuously developing, advancing and evolving; every day there is something new and innovative popping up. Now, with the way the digital environment is progressing, it is encouraging everyone to get involved and join the digital revolution. So, taking into account the rise of digitalization, everyone constantly wants things quicker and faster. Companies who offer a speedier payment service are prospering more than their competition.

Same Day ACH

This is why the National Automated Clearing Housing Association decided to launch its same day ACH debit payment method, which is segmented into three phases. Phase 1 was rolled out last year, and was designed to make credit payments smoother; this received fantastic support and despite some concern regarding fraud and other issues, no hiccups occurred. One of the main factors as to why phase 1 was so positive is due to the research done by the NACHA and the Regional Payments Associations. This ensured that the organizations involved understood exactly what was going to change.

Phase 2 commenced recently, September 15 to be precise, and it makes financial organizations accept same-day debit payments. So, this means financial institutions now have the tools to authorize faster credits and faster debits. However, it was heavily advised that both banks and companies do the research on ACH phase 2, as they make be very surprised by the changes.

Laura Steele, who is the president and CEO of the Regional Payments Association ePayResources, had the following to say… “People aren’t going to complain if you put money into their account too early, but you can rest assured people will complain, and probably complain pretty loudly, if you take money out of their accounts before you’re authorized to do so.”

This was referring to the entry date of transaction being incorrect. Banks are now putting steps into place to ensure any unintended same day ACH debit payments are avoided. However, it is important that companies also ensure that the date of transaction is listed as when they want the money to be taken out of the account; this way the huge advantages of the same day ACH debit can be capitalized on without any problems arising.

Same day ACH debits will prove to be a tremendous addition to the payments and commerce industry, as being able to make payments faster is a big attraction. Of course, the success of this current phase 2 will rest on the amount of unintended same day transactions and any other issues, but these have so far been kept to a minimum. Ross McKay, a senior vice president at TD Bank, stated, “I don’t think it will be revolutionary, but I think it will be another incremental improvement to the [payments] ecosystem.”

The final phase of the same day ACH payments will launch on March 16, 2018, and will make mandatory credit available before 5pm. Although, whether financial institutions and companies buy into phase 3 will be determined by the overall success of phase 2.

Contact Us:  If you are experiencing difficulty in getting approved for a high risk ach processing.  We can help.

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622
https://hrma-llc.com

Payment Processing Regulation Getting Deep

Payment Processors are getting hit with regulation

Regulation

Payment processing businesses are facing rapid changes due to increasing debit, credit and prepaid landscapes. As a result, the business models even change on a daily basis. In order to accommodate these changes, it is important for a business to have a high level of agility and flexibility in all aspects. If you take a look at the mobile payment platforms, you would realize how dynamic the industry is. This is just one side of pressure that the businesses have to absorb in order to survive.

A variety of regulations are introduced at federal level. National Credit Union Administration (NCUA), Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board (FRB) and Comptroller of the Currency (OCC) are the key regulators out of them. These regulators are always looking forward to ensure a sound and safe financial system, which can provide enhanced protection to consumers. In the meantime, the anti-money laundering laws are being controlled on a regular basis as well.

If you take a look at some of the recently introduced regulatory compliances, you will be able to get a clear understanding about how payment processors are squeezed from all sides. DOJ’s Operation Chokepoint can be considered as a perfect example to prove the above mentioned fact. Operation Chokepoint has heavily influenced the payment processors. On the other hand, a massive data breach took place in the recent past and it created a tremendous impact on millions of consumers. JP Morgan Chase was attacked and The New York Times has reported that this attack touched over 83 million businesses and households.

Traditional banking agencies, such as NCUA, FRB, FDIC and OCC are responsible for maintaining the soundness and safety of the financial system. As per the viewpoint of these agencies, any party taking part in the payment process along with a financial institution is subjected to enforcement and supervision by the respective regulatory agency of the federal bank. This is another prominent reason that is squeezing the payment processors. In fact, this is considered as the top down squeeze.

Bottom up is responsible for another squeeze that payment processors have to experience. CFPB is having a singular focus on consumer. As a result, sufficient rules have been implemented to offer enhanced financial protection to the consumers. This has forced the CFPB to take strict action against credit card companies. The debt collection and marketing practices are considered as deceptive activities by CFPB.

Self-regulation, FTC and justice are responsible for the squeeze that payment processors have to experience from the sides. FTC, DOJ and other state and federal regulators are responsible for this side squeeze. Usually, the payment processors offer their services through the regulatory guidance of sponsoring banks. However, the payment processors are now being asked to operate in compliance with the operating regulations offered by payment card industry data security standards, different card brands, OFAC requirements, FinCEN requirements, economic sanctions and anti-money laundering sanctions.

Contact Us:  If you are experiencing difficulty in getting approved for a high risk merchant account.  We can help.

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622
https://hrma-llc.com

Operation Chokepoint Ends

DOJ Ends Operation Chokepoint

Operation Chokepoint

New Department Of Justice has ended Obama Administration’s assault business. United States Department of Justice had been working for the past four years to prevent banks from offering payment services to certain business verticals and entire industries. All those efforts came to a halt last month, with the Trump Administration’s Department Of Justice officially ending Operation Chokepoint.

The change happened back in 16th of August 2017, where Rep. Bob Goodlatte, Chairman of the House Judiciary Committee confirmed with an official announcement. However, this was not a public announcement and it did not appear in a public statement or a press release.

Operation chokepoint was initially designed with the objective of curbing fraud through choking off the access offered for all wrongdoers to the national banking system. This has become a requirement of every single business that exists out there in the world. Due to this initiative, banks were provided with the ability to deny the applications received by businesses that are dealing with high risk consumers. Even though the program was initially designed to eliminate the abusive practices followed by illegal payment processors, it also targets credit repair services, gun dealers, escort services and businesses that promote get-rich products.

The program was initially started back in 2013. At the start, a set of banks were provided with subpoenas, which was linked to the Federal Deposit Insurance Corporation. This helped the banks to figure out the high-risk merchant categories with minimum hassle. Any financial institution, which offered services to this type of a customer could be taken into a civil enforcement action. That’s because the financial institution is offering the services to a business that is linked with illegal activities, which can create an impact on the soundness and safety of the institution.

The entire program was controversial and critics raised their voice against it. They claimed that it can create a tremendous impact on the legitimate industries that exist out there in the world. Moreover, they highlighted that it would take away responsibilities held by regulators into the banks. These two claims were highlighted along with examples in the letter that was released by the Department of Justice.

Department of Justice also highlighted the positive aspects of ending operation chokepoint. In the announcement, it was stated that the new initiative was not taken with the objective of discouraging the provision of financial industries. All the lawful businesses are still in a position to enjoy an uninterrupted service. It would only create an impact on the unethical businesses.

The banks would continue to offer effective compliance programs, which can assist them with understanding the true identity of all their customers. This would keep away high-risk customers from using the services offered by banking systems. The newly introduced programs would include third party payment processors as well. Even though operation chokepoint has been ended by the Department of Justice, businesses that fall into the high-risk categories don’t need to worry too much because alternative programs can provide them with much needed assistance.

Contact Us:  If you are experiencing difficulty in getting approved for a high risk merchant account.  We can help.

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622
https://hrma-llc.com

What Is High Risk Ach Processing [InfoGraphic]

Understanding High Risk Ach Processing

High Risk Ach Processing

Some of the business owners are rejected from being provided with the ability to ach payments from customers. If you are such a business owner, you don’t need to worry about anything because there is still hope. In other words, you will be able to find plenty of service providers who offer ach processing to business owners like you.

The processors consider several factors into account when determining whether a specific business processes a risk or not. Out of these factors, the risk associated with your business industry holds a prominent place. For example, if your industry is linked to a high risk of “Unauthorized Returns”, you will be denied from receiving a merchant account.

Bad credit can also be considered as a key factor, which determines whether you will be able to obtain a merchant account or not. Therefore, you need to focus on getting rid of bad credit ratings as much as possible. However, you will not be able to do it overnight and you will have to wait for several months.

High Risk Ach Processing can be considered as one of the most convenient methods available for you to stay away from the frustration stated above. In here, you will be able to convert your checks electronically. As a result, Ach payments would be processed without leading you towards any hassle.

High Risk Ach can therefore be considered as an excellent tool that is available for the people to stay away from wasting several hours for the checks to show up. You will be able to receive money for your checks faster than ever. As a business owner, you have a clear understanding on how your clients would be benefited when they are getting paid within a short period of time. This can leave a positive impression on your business as well. As a result, you can easily increase the number of sales that is done by your business. Most importantly, you don’t have to run to the bank and it can help you save a considerable amount of time.

It would be a good idea to have a clear understanding about the ach check processing steps as well. Then you will be able to figure out what’s missing in the payment processing scope of your business as of now. If the customers are not making payments on time, or you have come across instances where you cannot get the payments processed on time, you will have to deal with a lot of frustration. High Risk Ach Processing can keep you away from that frustration.

With High Risk Ach Processing, you don’t need to wait for days, weeks or months in order to get the payments processed. You will be able to get them processed within a short time period of just 24 hours. Therefore, it is extremely important to take a look at this amazing opportunity that you have in front of you. Your business will be benefited by it in the long run.

Contact Us:  If you are experiencing difficulty in getting approved for ach processing and provide a legal product or service. We can help.

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622
https://hrma-llc.com/high-risk-ach-processing/