A report by Visa estimated that retailers lost approximately
The parties that are immediately affected by the fee imposed by Visa are merchants and acquiring banks, or banks that process card payments on behalf of a merchant. This fee will be enacted in the following situation: a merchant accepts a fraudulent payment from a consumer, and sends it to the acquiring bank to process it. Subsequently and after the transaction is authorized, the transaction is detected as being fraudulent and Visa imposes a fee charged back to the bank. The bank then turns the fee back to the merchant in an effort to punish them for their limited security measures.
This fee will be primarily aimed towards transactions categorized as Cardholder Not Present (CNP), where fraud tends to be the highest. (2)
Because of the billions that are being lost to chargeback fraud annually, eConsumerServices predicts that Visa will move next to issuing banks, which are banks that offer card association branded payment cards directly to consumers (e.g., debit cards and credit cards).
Visa will pursue issuing banks, as a method of avoiding the ecommerce industry from being inundated with chargeback fees. The issuing banks will then turn over all fees imposed on them to the consumers that they've issued cards to.
"When Visa comes after the issuing banks, these banks will be much more aggressive, and forgiveness of credit mishaps or transaction dishonesty will be non-existent," said eConsumerServices CEO
In an effort to protect themselves, consumers will benefit most from avoiding interaction with the bank if they suspect fraud or have an unsatisfactory transaction with the merchant. By employing the assistance of an objective third party with expertise in the area of mediating online disputes, the consumer can save the consumer's credit score and resolve any disputes directly with the merchant.
Cardone maintains that consumers will help the economy by trying to resolve transaction issues themselves first, as opposed to using their bank as the first line of defense. When working with a mediation service, the consumer benefits by being assisted with a smooth resolution process, as well as the protection of their name and credit. Merchants who use these third-party mitigation services will be considered "safe to do business with" in the near future, per Cardone.
eConsumerServices serves to remedy friendly fraud by intervening in the dispute process--contacting the merchant directly on behalf of the consumer--to resolve any unsatisfactory transactions. This process significantly reduces the number of chargebacks filed, and restores a level of equal satisfaction to both parties.
For more information, visit http://www.eConsumerServices.com.
About Global Risk Technologies and eConsumerServices:
Global Risk Technologies is most known for their role in payment processing solutions that cater to each side of the value chain: Chargebacks911.com and eConsumerServices.com. The firm is headquartered in
eConsumerServices focuses on the cardholder or consumer in order to encourage transactional resolution before it progresses to a chargeback. eConsumerServices caters to the B2C (business-to-consumer) sector of Global's initiative, in working to realize greater standardization and increased efficiency within the payments industry. eConsumerServices is an online mediation service that works to effectively and efficiently resolve transaction issues between merchants, consumers, and banks. For more information visit http://www.eConsumerServices.com
1. Harper, Elizabeth. "'I Didn't Buy That': Friendly Fraud Costs Retailers
2. Hayhurst, Lee. "Travel Firms Face Impact of Visa Chargeback Fee." RSS.
3. "EU Travel Firms to Be Impacted by Visa's New Chargeback Fee | Payment Magnates." Payment Magnates. N.p.,
Read the full story at http://www.prweb.com/releases/2014/08/prweb12118985.htm
Most Popular Stories
- Cape Cod Building Mussel Industry
- Hollywood Eager to Grasp Hispanic Market
- Frightfully Fun Films Return for Halloween
- Would Soccer Be Richer Without Small Clubs?
- Microsoft Beats Income Expectations
- Sears Denies Store Closings, Layoffs Report
- Cloud Lifts Microsoft's Quarterly Results
- IS Funded by Black Market Oil Sales, Racketeering
- Weekly Jobless Claims Rise but Remain Low
- Pfizer Approves $11 Billion Buyback Plan