Did
you know? Electronic payment fraud costs merchants millions of dollars
every year. What are you doing to protect your profit margins? The minimal
costs of adding a fraud protection service to your transactions will
easily pay for themselves in chargebacks prevented.
The card associations and check processors place the liability
on the merchant to ensure that the transaction is legitimate. If a
transaction is fraudulent, the merchant will take a loss on (A) the cost
of the goods/service provided to the “customer,” (B) the FULL charged-back
transaction amount that will be debited out of your checking account, and
(C) a chargeback penalty from your processor, usually $25-30. In addition,
if you have more than 1% chargeback ratios (1 out of 100 sales or $1 per
$100 in sales), your merchant account will most likely be terminated as
well, potentially forcing the merchant out of business. You may be placed
on the
TMF list as well, preventing you from acquiring another merchant
account, there are no second chances. As unfair as this may seem, it is
the reality a merchant must face when accepting electronic payments.
Visa/MC/AmEx/Discover all extend to their card holders 6 months to
issue a chargeback, and ACH customers also have 6 months to issue a
dispute.
A merchant needs to realize that the rules are in place to protect
customers from the fraudulent use of their credit card & checking account,
and *NOT* to protect the merchant from fraudulent customers! The merchant
must (A) protect themselves from fraudulent transactions and (B) protect
themselves from “friendly fraud.” Friendly fraud is where the customer
tries to take advantage of the chargeback protection afforded to them,
even when the merchant *did* deliver the product or service to the
customer.
We offer the following Fraud Protection services to help maximize the
profits and confidence of our merchants:
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Verified by Visa & MasterCard SecureCode: This service is
offered directly from Visa & Mastercard through our gateway to reduce online
fraud; it will help protect the merchant from chargebacks for “FRAUD” codes,
which are the most common type of chargebacks with card not present
transactions.
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Fraud Scrubbing: This service can be used in conjunction with
Verified by Visa and SecureCode, or by itself. Use our gateway’s internal
fraud scrubbing engine, as well as your own rule-sets to monitor and prevent
fraudulent transactions. |
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dCheck Demand Draft:
Use our
check processing solution for online transactions instead of eCheck and ACH.
With eCheck and ACH, customers have 6 months to issue a simple
dispute/chargeback. With our electronic demand draft, after 10 days, the
burden of proof is on the customer to prove that fraud occurred, and the
regulations are designed to protect the merchant from fraudulent customers.
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