Suspicion of fraud is one of the main reasons that leads to the termination of a merchant account, sometimes without prior notice. It is therefore important for merchants to ensure that they do not fall prey to fraudsters who use their accounts illegally leading to termination. It is for this reason that it is important to partner with sites that provide the best anti fraud solutions in the industry so as to ensure that your online transactions are always safe.

Since security is pivotal in online transactions done through merchant accounts, there are a number of ways in which online users can protect themselves from fraud. If you do not want to be terminated on suspicion of fraud, then there are a number of anti fraud solutions that you can take advantage of and they include:

  • Delayed payments

In most cases, once an online payment for goods or services is made through a debit or credit card the payment is forwarded to a retailers account. However, to ensure that the transaction is legitimate, merchant account holders can defer payments for a number of days allowing them to make offline checks as well. If the transaction is genuine then the payment is released and completed on both ends, but if there is any appearance of fraud then payment can be withheld thereby reducing chances of getting a merchant account terminated.

  • Use of risk management tools

Online transactions will always involve some risk because of fraudsters that are increasingly finding ways of take advantage of online shoppers. It is for this reason that it is important to use sites that minimize the risk of having your merchant account used for illegal activity resulting in charge backs on your card. Merchants considered to be high risk by banks can use tools such as cardholder authentication, micro deposits as well as technologies such as neural networks to prevent fraud through their accounts.

  • Protection of data

Data security when using merchant accounts is fundamental in ensuring that the risk of fraud is minimized. It is important to use online platforms that are closely monitored to detect any type of illegal access to a merchant’s account. Furthermore, the information provided by merchants when participating in online transactions should be encrypted to make it as secure as possible thereby reducing chances of fraud when using debit or credit cards.

Frequently Asked Questions

What is TMF or Terminated Merchant File? MF or terminated merchant file refers to a list of merchants whose accounts have been terminated for a reason. TMF does not exist but the term is still used commonly in reference to MATCH file.View More

Request a Quote

captcha