10 06 2014

10 06 2014

Small Businesses Must Put Security First

Merchant cash advances, business credit card processing, marketing campaigns – there’s no shortage of issues for small business owners to focus on. However, a recent report from The Associated Press makes the case that one factor may deserve some special attention moving forward.

Internet security is once again in the news following the security breach at Home Depot stores across the country. Charles Tendell, CEO of Azorian Cyber Security, told the AP that small businesses are often more vulnerable to these types of risks than larger companies because they don’t have dedicated security measures in place.

Of course, the Internet doesn’t represent the only security risk for small businesses. Card fraud remains a serious issue, and a recent report from LexisNexis Solutions shows fraud is costing business more in 2014 than it did during the previous year.

More troubling, a shift in liability for this type of fraud is on its way to U.S. businesses. Beginning in October 2015, the liability of credit card purchase fraud will be put on businesses that are not using Europay, MasterCard and Visa (EMV) technology.

“Presently, if you accept a fraudulent payment, the bank issuing the card is liable for the amount of the fraud and the bank will absorb the cost,” stated Educator Paul James Werner in an article for Michigan State University. “There is a ‘liability shift’ that will be actualized in October 2015. If your business accepts a fraudulent payment, and you do not have an EMV card reader, your business will absorb the cost of that fraud. The banks are no longer going to be liable. In other words, if your business processes a fraudulent sale of $25, you will be out that $25 if you do not have an EMV card reader.”

While $25 may not sound like the end of the world, imagine what more expensive fraudulent purchases could do to a business’s bottom line.

How small business can fight back

Combating these risks may seem overwhelming, but there are strategies small business owners can employ to fight back.

First and foremost, investing in proper security measures for work computers is a must. Software that is designed to prevent malware and viruses will go a long way toward keeping small businesses safe.

Additionally, with the shift in liability for card fraud not occurring until October 2015, small businesses still have plenty of time to implement EMV payment processing into their business.

Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.


US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.


For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.


For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.


Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.