How to Switch Payment Processors Without Losing a Single Sale

By FoundersPay · 7 min read · Merchant Services

Most business owners know they could be getting a better deal on payment processing. The reason they don’t switch isn’t price. It’s fear.

Fear of downtime during a busy day. Fear of customers’ cards getting declined. Fear of the new system not working with their POS. Fear of being locked into the old contract. Fear of the whole thing being more trouble than it’s worth.

These are reasonable concerns. They’re also almost entirely solvable with a little planning. Here’s how the switch actually works when it’s done right.

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Cheat Sheet:

• A typical processor switch takes 3 business days from start to finish.
• Done correctly, there is zero downtime at the point of sale.
• Most merchants overestimate the difficulty by a wide margin.
• The biggest risks (early termination fees, equipment leases, settlement gaps) are all things a good payment partner manages for you.
• At FoundersPay, we handle the entire transition. You don’t fill out forms or call your old processor.

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Why most merchants put off switching

The honest answer is that processors design the switching process to feel intimidating. Long contracts, equipment leases, vague cancellation procedures, and statements that are deliberately hard to read all add up to one thing: inertia.

Inertia is profitable for them. Every month a merchant stays put paying inflated rates is another month of revenue. There’s no incentive for your current processor to make leaving easy.

That’s why working with someone who handles the transition for you matters more than most merchants realize.

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What actually happens during a switch

Here’s the real timeline when you switch processors with FoundersPay:

Day 1: Statement review and quote. We pull your last few merchant statements, calculate your effective rate, and show you exactly what you’re paying. Then we put together a side-by-side comparison of your current setup versus what we’d offer.

Day 1 to 2: Application and underwriting. If you decide to move forward, we send you a short application. This is the only paperwork you fill out. We submit it to underwriting, which typically approves within 24 to 48 hours for most small businesses.

Day 2 to 3: Equipment and setup. We program your new terminals or POS hardware while your current setup keeps running. If you’re using Clover or another modern POS, we’ll either reprogram your existing hardware or ship you new equipment, configured and ready to go.

Day 3 to 5: Cutover. We coordinate the actual switch. This is the part most merchants worry about, and it’s the part that’s easiest to get right with planning. You run your old processor through the end of business one day, switch hardware the next morning, and start processing on the new account. No customer ever sees a difference.

After the switch. We help you cancel your old account, including handling early termination fees in many cases (more on that below). We also stay involved for ongoing support, statement reviews, and any questions that come up.

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The biggest risks (and how they’re handled)

There are four things that genuinely can go wrong in a switch. All of them are manageable.

Early termination fees. Some processors charge a fee if you cancel before your contract is up. These can range from a few hundred dollars to several thousand. We’ll review your current contract before you commit to anything and tell you exactly what you’d owe. In many cases, FoundersPay can offset or reimburse part of that fee to make the switch worthwhile.

Equipment leases. If you’re locked into a non-cancelable terminal lease, switching processors doesn’t get you out of the lease. You may need to keep paying it out, even though you’re not using the equipment. We’ll calculate whether the savings from switching still make sense given the lease balance. Often they do, by a lot.

Settlement gaps. When you switch, there’s a brief period where your old processor is settling final transactions and your new one is taking over. Done right, this is invisible. Done wrong, you can have funds delayed by a few days. We coordinate the timing so this doesn’t happen.

POS integration issues. If you use a POS system that’s tied to your processor (some are), switching processors may require reconfiguring or replacing the system. We check this before you commit. If your POS won’t work with our setup, we’ll tell you upfront.

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What to ask before you switch

Whether you’re considering FoundersPay or anyone else, ask these questions before signing anything:

• What is my exact effective rate going to be, including all fees?
• Are there any hidden monthly, statement, or PCI fees?
• Is there an early termination fee or contract term?
• Will I own my equipment, or am I leasing it?
• What happens if I want to cancel later? What’s the process?
• Who handles the actual transition from my current processor?
• What kind of support is available, and when?

If a processor can’t answer these clearly and in writing, that’s your answer.

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The cost of waiting

Here’s a way to think about it. If your effective rate is 0.75% higher than it should be, and you process $40,000 a month in card volume, you’re losing $300 a month, or about $3,600 a year.

Every month you delay switching is another $300. The actual switch takes a week. The math works out pretty quickly.

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How FoundersPay makes it simple

We handle the entire transition for our merchants. That means:

• We review your current statement and contract for free.
• We tell you exactly what you’ll pay, in writing, with no hidden fees.
• We program your equipment and ship it ready to use.
• We coordinate the actual cutover so there’s no gap in service.
• We help you cancel your old account and handle the paperwork.
• We’re available 24/7, 365 days a year for support.

Most of our merchants are up and running on a better setup within a week of their first call.

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Ready to see what switching could save you?

Send us your most recent merchant statement. We’ll calculate your effective rate, show you what FoundersPay would offer, and lay out exactly what the switch would look like. No pressure, no obligation.

Call FoundersPay at 856.696.1906 or visit FoundersPay.com to get started.

How Much Are You Actually Paying to Process Credit Cards?

By FoundersPay · 7 min read · Merchant Services

Most business owners can tell you their advertised processing rate off the top of their head. “I’m paying 2.6%.” “We’re on a 2.9% plan.” “Our rate is 1.5% plus ten cents.”

The problem is that the advertised rate is almost never what you’re actually paying.

The number that matters is your effective rate, and most merchants have never calculated it. The ones who do are usually surprised by what they find.

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Cheat Sheet:

• Your effective rate is the total amount you paid in fees divided by your total card volume.
• It’s the only number that tells you the truth about your processing costs.
• Most small businesses are paying an effective rate 0.5% to 1.5% higher than the rate they think they’re paying.
• Calculating it takes about 1 minute if you have a recent merchant statement.
• Once you know your effective rate, you have leverage. Without it, you’re guessing.

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What is your effective rate?

Your effective rate is a single percentage that captures everything you’re paying to process credit cards. Not just your advertised rate. Every fee, every assessment, every monthly charge, every line item on your statement, all rolled up into one number.

The formula is simple:

Effective Rate = (Total Fees ÷ Total Card Volume) × 100

That’s it. If you processed $50,000 in card volume last month and paid $1,400 in fees, your effective rate is 2.8%. Whether your processor advertises 2.5% or 1.9% plus interchange doesn’t matter. The 2.8% is what you actually paid.

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Why your advertised rate is misleading

Processors advertise the rate that sounds the most attractive. What they don’t always highlight are the other line items that pile up on your statement every month.

Here are some of the most common ones that inflate your effective rate:

• Monthly account fees (often $10 to $50)
• Statement fees
• PCI compliance fees (often $99 to $199 per year, or monthly)
• PCI non-compliance fees (charged when you haven’t completed your annual self-assessment)
• Batch fees (a small charge every time you settle)
• Authorization fees (per transaction, separate from your percentage rate)
• Network access fees (Visa, Mastercard, Discover assessments)
• Gateway fees (for online or virtual terminal use)
• Chargeback fees
• Equipment lease fees

A merchant on a “2.6% flat rate” can easily end up at a 3.2% to 3.5% effective rate once all of these stack up. That difference, on $30,000 a month in volume, is more than $2,000 a year in fees you didn’t realize you were paying.

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How to calculate your effective rate in 5 minutes

Pull out your most recent merchant statement. You’re looking for two numbers.

Step 1: Find your total card volume. This is the total dollar amount you processed in card transactions for the month. It’s usually labeled “Total Sales,” “Card Volume,” or “Gross Volume.” Ignore any refunds or adjustments. You want the gross number.

Step 2: Find your total fees. This is every charge your processor billed you for the month. Some statements make this easy with a “Total Fees” line. Others bury it. If you can’t find a single total, add up every fee line you can find: discount fees, assessments, monthly fees, PCI fees, authorization fees, statement fees, and anything else.

Step 3: Divide. Total fees divided by total card volume, then multiply by 100. That’s your effective rate.

If you want to be more accurate, do this for three months in a row and average them. Some fees only hit quarterly or annually, so a single month can give you a slightly low number.

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What’s a good effective rate?

There’s no universal answer, but here’s a reasonable benchmark for small businesses:

• 2.5% to 3.10% is in the normal range for many small businesses

A few things affect what’s reasonable for your business specifically. Card-not-present transactions (eCommerce, phone orders) cost more than swiped or chip transactions. High-rewards card volume (like a clientele that uses a lot of premium travel cards) drives up interchange. Industries with higher dispute rates pay more.

But even accounting for all of that, an effective rate above 3% is almost always worth investigating.

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Try it: a quick example

Say you run a small retail shop. Last month:

• Total card sales: $42,000
• Total processing fees on your statement: $1,386

Effective rate = ($1,386 ÷ $42,000) × 100 = 3.3%

If your processor advertised your rate as 2.5%, you’re paying 0.8% more than you thought. On $42,000 a month, that’s roughly $336 a month, or about $4,000 a year in fees that aren’t going to anything you can identify.

That’s the kind of number that changes the conversation.

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What to do once you know your effective rate

Knowing your effective rate is step one. Step two is figuring out what’s actually fair for your business.

That’s harder to do alone. Statements are designed to be confusing, and what looks like a high effective rate might be reasonable for your industry, or it might be a sign of unnecessary fees that can be removed.

The fastest way to find out is to have someone read your statement who actually knows what to look for.

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Get a free statement audit from FoundersPay

We do free, no-obligation statement audits for small businesses across South Jersey and the surrounding area. We’ll calculate your effective rate, flag any unnecessary fees, and show you what a fair setup looks like for your specific business.

No pressure, no sales pitch. Just a clear answer to a question most merchants have never gotten a straight response on.

Call FoundersPay at 856.696.1906 or visit FoundersPay.com to send us your statement.

 

Here’s the rewritten post, centered around FoundersPay specifically:

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What Is a Merchant Account — And Do You Actually Need One?

By FoundersPay · 7 min read · Merchant Services

If you’ve ever tried to set up credit card processing for your business, you’ve probably run into the term “merchant account.” It sounds straightforward. It isn’t always. Some processors tell you that you need one. Others say you don’t. Some bundle it invisibly into their service. Others charge you separately for it.

At FoundersPay, we get this question a lot. Here’s a clear answer.

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Cheat Sheet:

• A merchant account is a special bank account that holds funds from card transactions before they transfer to your business checking account.
• Services like Square and Stripe don’t give you your own account. You’re pooled in with thousands of other merchants, which creates instability.
• A dedicated merchant account through FoundersPay gives you your own account, negotiated rates, and a real person to call when something goes wrong.
• For businesses processing more than $10,000 per month, a dedicated merchant account almost always makes financial sense.
• Getting set up with FoundersPay typically takes 1 to 3 business days.

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What is a merchant account?

When a customer swipes their card at your business, the money doesn’t land in your bank account instantly. It moves through a series of steps involving the card networks (Visa, Mastercard), the customer’s bank, and your payment processor.

A merchant account is a dedicated holding account that sits between the card networks and your business bank account. When a transaction settles, funds go into your merchant account first, then transfer to your checking account, typically within 1 to 2 business days.

Think of it as a staging area. It exists specifically to facilitate card transactions and is governed by your agreement with your processor and the card networks.

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The difference between a merchant account and an aggregator

This is where most of the confusion comes from. Services like Square, Stripe, and PayPal use a model called payment aggregation. You don’t get your own merchant account. Instead, you’re processed under their umbrella account alongside thousands of other businesses.

Here’s how that stacks up against a dedicated merchant account through FoundersPay:

Dedicated merchant account (FoundersPay)

• Your own account, not shared with anyone
• Rates negotiated specifically for your business
• Stable, with far lower risk of holds or freezes
• 24/7 live support, 365 days a year
• Direct relationship with your processor and acquiring bank

Payment aggregator (Square, Stripe, PayPal)

• Shared account across thousands of merchants
• Flat-rate pricing, often higher at volume
• No underwriting means faster setup but more account instability
• Support is largely self-service (chat, help articles)
• Limited recourse when your account gets flagged or frozen

Aggregators are convenient for brand-new businesses or very low-volume sellers. But that convenience comes with a real trade-off. Because aggregators skip underwriting and accept anyone instantly, they manage risk on the back end. That means your account can be frozen or your funds held with little warning. For an established business, that’s a serious problem.

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Do you actually need a dedicated merchant account?

The honest answer: it depends on your volume and your risk tolerance.

You probably don’t need one if you’re just getting started, processing under $3,000 to $5,000 per month, and need to get running immediately with no upfront commitment. An aggregator is a reasonable starting point at that stage.

You almost certainly do need one if you’re processing $10,000 or more per month, operate in retail, restaurant, or a service-based industry, or simply can’t afford a sudden account hold disrupting your cash flow. At meaningful volume, the rate difference between a dedicated merchant account and a flat-rate aggregator can add up to thousands of dollars per year.

A dedicated merchant account through FoundersPay also means you have a real point of contact when something goes wrong. Not a chatbot. Not a help center article. A person who knows your account.

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How FoundersPay gets you set up

A lot of business owners assume the application process is complicated. It isn’t, at least not when you work with us. We handle the paperwork, walk you through the underwriting process, and typically have merchants up and running in 1 to 3 business days.

We work with businesses across retail, restaurant, eCommerce, and service industries throughout South Jersey and the Philadelphia area. Whether you need a countertop terminal, a Clover POS system, mobile payments, or an eCommerce solution, we’ll set you up with the right equipment and a processing structure that fits how you actually do business.

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What about higher-risk business types?

Some industries are classified as higher risk by card networks, which means not every processor will work with them. If your business falls into that category, the answer isn’t to default to a generic aggregator. It’s to work with a processor who knows how to place your account correctly from the start.

FoundersPay has experience working across a range of business types. If you’re not sure whether your industry creates any complications, the best thing to do is ask us directly. We’ll give you a straight answer.

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A merchant account isn’t just a technical requirement. It’s the foundation of how your business gets paid. Getting it right from the start, with the right pricing, the right equipment, and the right support, makes a difference you’ll feel every day.

Ready to find out what the right setup looks like for your business? Give FoundersPay a call at 856.696.1906 or email hello@FoundersPay.com to get a free quote.

 

What Is a Chargeback — And How Can Small Businesses Fight Back?

By FoundersPay · 8 min read · Merchant Services

Chargebacks cost U.S. merchants an estimated $125 billion per year. For small businesses operating on thin margins, even a handful of disputed transactions can do real damage, not just to your revenue, but to your standing with your payment processor.

The frustrating part is that many chargebacks are avoidable. And even when they’re not, merchants have more power to fight them than most realize. Here’s what you need to know.

The Cheat Sheet:

• A chargeback is when a customer disputes a charge directly with their bank and the bank reverses the transaction, pulling funds from your account.
• Friendly fraud — customers falsely claiming they didn’t authorize or receive a purchase — accounts for the majority of chargebacks.
• Merchants have a limited window (typically 7 to 30 days) to respond to a chargeback dispute.
• Good documentation (receipts, delivery confirmations, signed agreements) is your most powerful defense.
• Keeping your chargeback ratio below 1% is critical. Exceeding it can result in higher fees or losing your merchant account entirely.

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What is a chargeback?

A chargeback occurs when a customer contacts their bank or card issuer to dispute a transaction instead of coming to you directly. The bank investigates, and if they side with the customer, the transaction amount is reversed, pulled directly from your merchant account, along with a chargeback fee that typically runs $20 to $100 per incident.

Unlike a standard refund, which you control, a chargeback bypasses you entirely. By the time you’re notified, the money is already gone. Your job at that point is to build a case to get it back.

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How does the chargeback process work?

1. Customer disputes the charge. The cardholder contacts their bank and claims the charge was unauthorized, the item wasn’t received, or the product wasn’t as described.
2. Bank issues a provisional credit. The issuing bank typically credits the customer immediately while the dispute is investigated, meaning the funds leave your account right away.
3. You’re notified and given time to respond. Your processor notifies you of the dispute. You typically have 7 to 30 days to submit a rebuttal with supporting evidence.
4. The bank makes a ruling. If your evidence is strong, the funds are returned. If not, the chargeback stands and you’re also out the chargeback fee.
5. Arbitration (if escalated). Either party can escalate to the card network for a final ruling. Arbitration is expensive and rarely worth it for small-dollar disputes.

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Why do chargebacks happen?

True fraud. Someone used a stolen card to make a purchase at your business. This is genuine fraud. The real cardholder didn’t authorize the transaction. EMV chip readers and tap-to-pay significantly reduce this risk for in-person transactions.

Merchant error. Processing errors, duplicate charges, incorrect amounts, or failing to issue a refund you promised. These are preventable with good processes and are generally the easiest disputes to resolve if you catch them early.

Friendly fraud. This is the big one. A customer makes a legitimate purchase, receives what they ordered, and then disputes the charge anyway. Friendly fraud accounts for an estimated 60 to 80% of all chargebacks and is on the rise as consumers become more aware of the dispute process.

Note: Friendly fraud is technically a form of theft. Merchants who maintain good records win a significant portion of these disputes, but only if they respond within the deadline and submit the right documentation.

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How to fight a chargeback: what evidence you need

When you receive a chargeback notification, your response needs to be specific, organized, and submitted on time. The following documentation gives you the strongest chance of winning:

• Signed sales receipt or transaction record showing the cardholder authorized the purchase
• Proof of delivery (tracking number, delivery confirmation, or signed receipt for physical goods)
• Communication records (emails, texts, or messages showing the customer received and acknowledged the order)
• Photos or documentation of the item as shipped or service as delivered
• Your refund and cancellation policy, clearly displayed at point of sale
• Any prior interaction with the customer about the transaction or a complaint

For in-person transactions, EMV chip authorization (the customer inserting their chip card) is one of the strongest pieces of evidence you can have. It shifts liability away from you and back to the card issuer in most fraud scenarios.

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How to prevent chargebacks before they happen

Use clear billing descriptors. If the name that appears on your customer’s card statement doesn’t match what they recognize, they’ll dispute it. Make sure your descriptor clearly identifies your business.

Post your refund policy prominently. Customers who know how to get a refund from you are less likely to go to their bank instead. Make your policy easy to find at checkout.

Follow up after large purchases. A quick confirmation email or receipt goes a long way toward preventing “I don’t recognize this charge” disputes.

Respond to customer complaints quickly. Most chargebacks start as unresolved complaints. A business that responds fast and resolves issues directly rarely sees those turn into disputes.

Use AVS and CVV verification for card-not-present transactions. Address Verification System and CVV checks add a layer of authentication that makes fraudulent transactions harder and gives you better standing in disputes.

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Why your chargeback ratio matters

Card networks like Visa and Mastercard monitor your chargeback ratio, total chargebacks divided by total transactions in a given month. The threshold is typically 1%. Exceed it consistently and you’ll face higher processing fees, mandatory chargeback monitoring programs, and ultimately the risk of losing your merchant account altogether.

For a business processing 500 transactions a month, that means you can absorb no more than 4 to 5 chargebacks before you’re in the danger zone. It’s a tighter margin than most merchants realize.

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Chargebacks are an unavoidable part of accepting card payments, but they don’t have to be an unmanageable one. The right setup, the right documentation habits, and the right payment partner can dramatically reduce both your chargeback rate and your exposure when disputes do arise.

Dealing with too many chargebacks? FoundersPay works with small businesses to set up payment systems that reduce dispute risk from day one, and we’re here to help when issues come up. 24/7 support, 365 days a year. Visit FoundersPay.com to get started.

5 Ways Small Businesses Are Overpaying for Payment Processing (And How to Fix It)

The average small business pays between 1.5% and 3.5% per transaction in credit card processing fees. For a business doing $500,000 in annual card volume, that’s up to $17,500 a year — before factoring in monthly fees, equipment costs, and hidden charges that most merchants never scrutinize.

The problem isn’t just the fees themselves. It’s that most business owners set up payment processing once and never revisit it. Processors count on that inertia. Here are the five most common ways small businesses overpay — and what you can do about each one.

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1. Paying for a setup that doesn’t fit how you actually do business

Generic payment processing solutions are designed to work for everyone — which often means they’re not optimized for anyone. A mobile contractor paying monthly fees for an eCommerce gateway they never touch is wasting money. A restaurant without tableside or tap-to-pay capabilities is creating unnecessary friction at checkout.

The right payment setup depends on how and where you take payments. Brick-and-mortar businesses need fast, reliable in-person terminals. Service businesses that invoice clients need payment links and electronic invoicing. Restaurants benefit from POS systems built specifically for table management, tips, and order flow. A one-size-fits-all solution rarely fits any of these well.

Beyond the monthly fees, a mismatched setup can also cost you sales. Research consistently shows that checkout friction — slow systems, limited payment options, or clunky interfaces — directly increases abandoned transactions. In a competitive environment, that’s revenue you can’t afford to leave behind.

Fix it: Talk to a payment specialist about how your business actually takes payments day-to-day. The right setup should match your workflow, not force you to work around it — and it shouldn’t include services you’re paying for but never use.

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2. Leasing payment terminals instead of owning them

Terminal leases are one of the most profitable products in the payment industry — for the processor, not the merchant. A terminal that retails for $300–$500 can cost $2,000–$4,000 or more over the course of a multi-year, non-cancelable lease.

Many merchants sign equipment leases without realizing they’re locked in. Even if you switch processors, you may still be obligated to pay out the remaining lease balance.

Fix it: Calculate your remaining lease payments and compare them to the cost of purchasing a replacement terminal outright. In most cases, buying is the better financial decision. Reputable processors will often include terminals as part of their merchant agreement at no additional cost.

3. Not taking advantage of dual pricing or cash discount programs

Processing fees are a cost of doing business — but they don’t have to come out of your margin. Dual pricing (also called a cash discount program) lets you post two prices: one for cash and one for card. When customers pay by card, the processing fee is built into the price they pay.

Implemented correctly, dual pricing can reduce your effective processing cost to near zero. It’s now widely supported by Visa, Mastercard, and other card networks — provided it’s set up in compliance with their rules.

Many retail, restaurant, and service businesses have adopted this approach successfully, and customer acceptance is generally high when it’s communicated clearly at the point of sale.

Fix it: Work with a processor who has experience implementing compliant dual pricing programs. The setup matters — improper implementation can result in chargebacks or network violations.

4. Accepting a rate increase without noticing it

Most merchant agreements allow processors to change rates with as little as 30 days’ notice — often buried in a notification you may never see. Over time, small rate adjustments can add up to a significantly higher effective rate than what you originally agreed to.

Merchant statements are also notoriously difficult to read by design. Without a clear baseline to compare against, it’s hard to know when your costs have crept up.

Fix it: Pull your last three merchant statements and look at your effective rate — total fees divided by total volume. If that number has increased without a corresponding change in your card mix or volume, your rates may have been quietly adjusted.

5. Never shopping your processing rates

The payment processing industry is highly competitive, and rates are negotiable. Processors know that most merchants won’t switch once they’re set up, so there’s little incentive to proactively offer better pricing.

Businesses that haven’t reviewed their processing costs in the past 12–18 months are almost certainly overpaying. A free rate review from an independent processor typically takes 15 minutes and can identify savings you’re currently leaving on the table.

Fix it: Have your statement reviewed by a payment specialist who can show you what you’re actually paying versus what’s available in the market — no obligation required.

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Payment processing doesn’t need to be a black box. With the right pricing structure, the right equipment setup, and a processor who’s transparent about costs, most small businesses can meaningfully reduce what they pay and put those savings back where they belong — into the business.

Find out what you’re actually paying

FoundersPay offers free, no-obligation statement reviews for small businesses. We’ll break down your costs line by line and show you exactly what a better deal looks like.

Get a free quote. Email hello@FoundersPay.com

What is EMV?
EMV chip technology is becoming the global standard for credit card and debit card payments. Named after (Europay, MasterCard® and Visa®), this technology utilizes embedded microprocessor chips that store and protect cardholder data. This standard has many names worldwide and may also be referred to as: “chip and PIN” or “chip and signature.”

What is EMV/Chip technology?

EMV technology is an evolution in our payment system that will help increase security, reduce card-present fraud and enable the use of future value-added applications. Chip-enabled cards are standard credit/debit cards that are embedded with a microprocessor chip. Some may require a PIN instead of a signature to complete the transaction process.

What makes EMV different than the traditional magnetic stripe card payment?

Simply put, EMV is the most recent advancement in a global initiative to combat fraud and protect sensitive payment data in the card-present environment. Payment data is more secure on a chip-enabled payment card than on a magnetic stripe (magstripe) card, as the former supports dynamic authentication, while the latter does not (the data is static). Consequently, data from a traditional magstripe card can be easily copied (skimmed) with a simple and inexpensive card reading device – enabling criminals to reproduce counterfeit cards for use in both the retail and the CNP environment. EMV technology is effective in combating counterfeit fraud with its dynamic authentication capabilities ensuring the authenticity of the card.

What does EMV migration mean for card-not-present (CNP) merchants?

As EMV technology is adopted in the card present space, it is expected that fraud will also shift to the least secure channels, including CNP/eCommerce. From an online fraud perspective, it’s important that CNP businesses be prepared for this anticipated shift, as experienced in other regions that have already migrated toward chip card technology.
As fraud migrates online and fraudsters continue to get more sophisticated, the tools you have in place now may no longer be advanced enough to protect you and your customers. The strategy is key and it’s imperative to take the extra measures to know your customers their behavior. It is recommended that you avoid the use of Address Verification (AVS) and Card Code Verification Values (CVV) checks as your sole fraud detector since the false positive exposure can be high with these tools alone.

Tools such as 3D Secure utilize SSL technology while adding an authentication step to provide a standardized and secure method of performing eCommerce transactions. By requesting further payment authentication, 3D secure recreated the security of a physical payment environment.
These tools will help reduce eCommerce fraud while having no negative impact on your customers’ experience. Having the ability to control your fraud prevention at the business level, without the required assistance of IT support or third-party vendors, helps to ensure that your non-fraudulent transactions are processed without issue.

Additional strategies to reduce the risk of eCommerce fraud:

• Achieve and maintain PCI Compliance
  • Keep your shopping cart software updated
  • Always require Address Verification (AVS) and Card Code Verification (CVV)
  • Limit the number of declined transactions
  • Keep a list of confirmed fraudulent transactions
  • Require strong passwords for customers
  • Utilize MasterCard SecureCode or Verified by VISA (3D Secure Tools)