Chargeback prevention is a necessary part of doing business if merchants want to retain hard-earned revenue and keep a low dispute ratio. There are four methods of chargeback protection. When used together, merchants are able to have the lowest possible dispute rate. The only way for merchants to stop true fraud is by putting preventive measures in place that block a fraudulent transaction from being accepted. True fraud is when a fraudster obtains credit card credentials … Read More
Visa’s New Dispute and Fraud Threshold
Visa has made some changes to the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP). The changes include lowering the thresholds that put merchants on these watch lists. As of October 1, 2019, Visa has implemented the following changes: Old Monthly Threshold New Monthly Threshold VDMP Early Warning 0.75% dispute ratio and 75 disputes 0.65%* dispute ratio and 75 chargebacks VDMP Standard 1% chargeback ratio and 100 chargebacks 0.9%* dispute ratio and … Read More
Visa Update: Transaction Receipt Requirement
Visa recently updated its transaction receipt requirements. The changes help increase flexibility for merchants and what is required. The majority of the changes surround contactless and unattended terminals. According to the Visa’s 2018 Dispute Management Guidelines, a card-present merchant should have the following on their card present receipt: Transaction receipt capability requirements can account for a significant portion of terminal costs. In an effort to reduce the cost and complexity of accepting cards, Visa has modified … Read More
What is Card Testing and How Can Merchant Protect Themselves?
Card testing may not sound as harmful as other types of fraud, but it can cost merchants in lost revenue, dispute fees, lost merchandise, and increased dispute rates. In this post, we will dive into how fraudsters test cards and how merchants can detect and prevent card testing. Card testing is when a fraudster obtains a list of card credentials and attempts an online purchase with the stolen card number to test it. Once the fraudster … Read More
How to Spot True Fraud: What to Look for to Protect Your Business
Merchants are not able to win true fraud disputes, which means that merchants need to take proactive measures to prevent these transactions from being accepted. By stopping fraudulent transactions, merchants will retain revenue and protect your dispute rate. In this post, we will explore what true fraud is, how to stop it, and how merchants can prevent fraud. True fraud is when a fraudster gets ahold of credit card credentials and successfully uses them at a … Read More
Will Cashierless Stores see an Increase in Disputes?
With the unveiling of the AmazonGo store in 2018, the idea of making the in-store experiences as frictionless and possible has spread. But will the removal of too much friction at checkout cause problems? From the customer’s perspective, they put things in their cart, walk out, then their account gets billed. It seems simple, but there is a large amount of technology working behind the scenes to make it possible. Let’s take AmazonGo’s process as an … Read More
7 Best Practices for Your Merchant Account and Keeping it in Good Standing
Your merchant account is a vital part of processing payments. So it’s critical to take proactive measures to keep your merchant account in good standing. We will go over what actions or situations could get a merchant account terminated and what merchants should do to stay on the right side of the card networks. A merchant account allows merchants to accept credit card transactions by holding the money from a sale once the payment gateway approves … Read More
How to Spot Friendly Fraud: What to Look for to Protect Your Business
Friendly fraud happens because of a cardholder mistake. Even though the cardholder is not maliciously disputing a charge, friendly fraud can cause your company to lose revenue and spend unnecessary time responding to disputes, which is why merchants should take proactive measures to prevent and respond to friendly fraud. Friendly fraud is when a cardholder mistakenly disputes a charge. This could stem from an unclear merchant descriptor, a family member making unknown purchases, or simple forgetfulness. … Read More
PayPal Merchant Fees: How Much Does a PayPal Merchant Account Cost?
Ecommerce merchants strive to have their checkout process be as frictionless as possible. One of the best practices for a good checkout experience is to allow customers to pay in whatever way they would like. For many merchants, this means allowing their customers to pay through PayPal. In 2019, PayPal had 286 million active accounts worldwide, so it makes sense that merchants would want to offer this payment option. But how much does offering PayPal cost, … Read More
The 5 Cybersecurity Trends Merchants Need to Be Aware of in 2019
JBateman is a Los Angeles-based freelance IT consultant, dedicated to educating and writing about the dangers of the Internet. When she’s not conducting small workshops or engaged in meetings, you’ll find her jogging in the park with her German Shepherd, Polly. As 2019 draws to a close, merchants, retailers, and consumers can all benefit from looking back at the cybersecurity trends that dominated this year. Merchants – who are at risk of incurring losses – especially … Read More