Three Tips for Applying for an Online Merchant Account

In order to run an ecommerce business, you'll need an online merchant account to accept payments over the internet. To increase your chances of getting approved, consider these tips before you apply. 

Get your credit in order

Just like when you apply for a loan, good credit matters when applying for an online merchant account. Before you apply, request copies of your credit report from all major reporting agencies, including Equifax, Experian and Trans Union, and banish late payments and liens from your report. Make on-time payments to increase your score and show that you are financially responsible.

Be honest 

Never lie on your online merchant account application. Be honest about any prior financial challenges, including bankruptcies, liens and judgments, as well as any previous merchant accounts you may have had. Being open and transparent about your past will make you appear more credible; not to mention, this information is on public record.

Demonstrate good processing history 

When applying for an online merchant account, you'll need to provide your current processing statements from at least three months prior. If you have a long history of positive processing, then provide more records to really show the merchant account provider that you will be a reliable customer. 

Online Fraud Soars As We Move to EMV Technology

This October marks the first anniversary of the official adoption of EMV chip-enabled credit and debit cards. The move away from traditional magnetic swipe cards is intended to minimize fraudulent transactions. Now 88% of MasterCard U.S. consumer credit cards have chips, a 105% increase since the October 1, 2015 adoption deadline. However, only about one-third of retailers have chip-active terminals. After the deadline had passed, liability for fraudulent credit card transactions has shifted from credit card companies to merchants. 

While not many merchants have adopted EMV technology, the chip cards are already helping cut down fraudulent in-store purchases where the technology is present. MasterCard reported a 54% decrease in counterfeit fraud costs at U.S. retailers that have adopted the technology, or are close to completing the implementation. This decline in fraudulent activity represents why merchants should make the switch to EMV. For U.S. merchants that haven't implemented the technology, counterfeit fraud costs increased by 77% year-over-year.

Although the adoption of EMV technology is keeping fraudulent activity down in stores with chip-enabled payment terminals, it's leading to a soar in online fraud. According to a report from Forter, online fraud attacks rose 137% between the second quarter of 2015 and the first quarter of 2016. Criminals are going digital to cash in on counterfeit swipe cards before they're obsolete. Even then, chip cards only really boost security in-stores, where the card has to be present.

To mitigate the risk of online fraud during the move to EVM, these tips for e-tailers will help them defend their business and customers against fraudsters.

Maintain PCI Compliance

To ensure the security of customer data, all merchants are required to comply with the Payment Card Industry Data Security Standard (PCI DSS). But, once you achieve compliance, you have to work to maintain it. The PCI DSS standard continually evolves to react to new threats, and your business must adapt with it. Stay updated on the latest requirements to ensure you are employing the best fraud prevention strategies and policies to safeguard your business. 

Match the IP Address and Credit Card Address

If your company operates globally, look out for international IP addresses that don't match the address associated with the credit card being used. Addresses that don't match up are a red flag. If the person is the real owner of the card, then they will contact their credit card company to let them know that are traveling or moving abroad. Prevent fraudulent transactions by restricting purchases from IP addresses where you don't offer shipping. 

Always Require a Security Code 

The security code is the number printed on the back of the credit or debit card. Requiring your customers to submit the security code ensures they have the card in their physical possession. In most cases, fraudsters do not have the card in hand. Since the magnetic strip does not store the security code, criminals do not have this number. 

Monitor Card Entry Attempts 

It's not uncommon for customers to mess up their credit card information one or two times when entering it on your site. But, when it happens more than a few times, it's a red flag. Many fraudsters will enter multiple credit card numbers in a row until they get a hit. Restrict the number of times a customer can enter their credit card number incorrectly and prohibit them from the site once they've reached that number. Your online credit card processing service may automatically restrict the number of incorrect entries. 

Use Credit Card Verification and Address Verification Services    

            

These services may be included with your online credit card processing service and also come as independent solutions.  A Credit Card Verification system uses reported trade line activity to confirm that the credit card number matches the consumer's identity. The Address Verification Service (AVS) matches the numeric address and zip code entered by the customer as the billing address with the information on file at the bank.   

By being proactive about cybersecurity, online retailers can minimize the risk of fraud and keep their customer's information safe and secure.

Choosing an Offshore Merchant Account Provider

The rapid expansion of the internet and mobile devices has helped fuel the growth of global ecommerce. Global ecommerce sales are expected to rise to over $3.578 trillion by 2019. By taking your online store global, you can expand your reach and increase sales to ultimately grow your business. In order to sell products internationally, you'll need an international merchant account. Here's what to look for in an offshore merchant account provider: 

Multi-Currency Processing 

In order to expand into new markets, you need to be able to accept the local currency. There are 180 currencies recognized as legal tender by the United Nations. Even if you're just expanding your product offerings to a few additional countries or territories, you should choose an offshore merchant account that's capable of accepting most of these currencies. As your business continues to grow, this will enable you to sell your products in emerging markets. 

Competitive Pricing

Are the merchant account provider's fees fair and reasonable? Make sure you understand the provider's rate structure prior to picking a service. While some online merchant account providers require a flat monthly rate, others base their fees on volumes and transaction values. The latter can be more beneficial, as the amount you pay will directly relate to revenue and how much you sell. Therefore, you won't be losing money in slower months.

Customer Service 

In case you have questions or experience issues with your account, you need an international merchant account provider that offers reliable 24-hour support.

3 Online Payment Solutions That Make Your Business (and Your Customers) More Secure

These days there are lots of easy solutions for taking online payments. But what if you want to ensure the highest level of security possible—both for you, and for your customers? Here are three of the most impressively security-focused online payment solutions we’ve seen.

1. To Prevent Fraudulent Transactions 

Any merchant knows that fraudulent transactions are a headache. In fact, they’re more than that—they may be the single biggest downside of the otherwise bullish world of online commerce. When a thief or scammer uses a card number to make a fraudulent purchase from your company, it will result in a chargeback/refund, the loss of shipping/fulfillment expenses, and potentially the loss of the merchandise itself. In other words, the thieves who steal from your customers are stealing from you too. Let’s look at how you can stop them.

One online payment solution we really like is payer authentication using the “3-D Secure” authentication process. This is a simple add-on service that can be used on its own or as part of an online payment processing platform. The system “speaks” to secure data verification protocols from the Card Association, Visa and MasterCard, using additional data about the card account to verify that it is the authorized payer before the transaction is made. This means you can simply decline fraudulent transactions—instantly and automatically—without losing a penny.

2. To Securely Take Phone, Mail, Email and Fax Orders

There are lots of ways to potentially process credit card orders that come in through mail, fax or over the phone. But most of them involve adding extra software to your computer, and many of them have security holes. Not anymore. One of our favorite payment solutions is to use a “virtual terminal.” Instead of clunky software, your terminal is a simple, secure web page where you process credit card orders. You can enter the card number as easily as if you’re making a Paypal payment. Best of all, each of your staff members gets their own secure login and password and all transactions/sales are logged for you to see.

3. To Keep Credit Card Information Secure Online 

What if you want to save your customers’ credit card information for them, but don’t want the risk of holding that data? That’s where a solution called “tokenization” comes in. With tokenization, you never touch your customers’ sensitive data. Instead, you’re given an encrypted “token” that allows you to complete transactions for them, without carrying a database full of credit card numbers. The token cannot be cracked mathematically and is stored with your payment processor, not with you.