mastercard (Score 1)

What a lot of people fail to recognize is that in the "Card Not Present" environment, 88% of all "fraudulent transaction" are directly linked to "I didn't do it" claims. What are these you ask? This is when a card holder makes a purchase for a services, a monthly subscription, etc and then claims no knowledge of the transaction, although the card has not been lost, stolen or has left there possession, and an Charge Back is filed. Both MC and Visa have admitted that in an "Card not Present" environment, there are no transaction , regardless of AVS and CVV2 match, that they will stand behind. The public as become aware of this and it has lead to Visa, MC and merchant being hit will a tremendous amount of "friendly fraud". WSB has asked for the number of customers that filed a Charge Back with WSB and that Visa/MC has actually re-issued a cc to. Thier response was "we can not release this info". Why won't they release this info? If a merchant exceeds the % CB threshold, the merchant is "fined" $100 per CB Visa/$50 MC. Were does this money go you ask? 70% goes to the Issuer for cost associated with the re-issuing of a new card. Sounds like its self serving to issue CB doesn't it!! What does this mean for smaller merchants? At Websitebilling.com only 37% of all our transaction are from "Adult" merchants. Most of our smaller merchants do not have the time, energy or resources to get a merchant account and then to manage CS calls, disputes, all the new rules and regs of Visa, MC, Amex and Disc. on a daily basis. This is not to mention the time and resource need to program your e-commerce site and add fraud protection. And here is what is really scary to me. At Websitebilling.com we have several employees that their sole job is to visit all the sites that we are billing for and review compliance and to visit "members" areas. This is done to, not only protect WSB, but customers at ensure that all advertised material is actually provided. We search daily for sites that might be offering "child porn" ,as per Visa regs., and we occasionally find a site that is trying to post pics that are not permissible. At WSB we have a 0 tolerance for these sites. What scares me is that MC can not see the transaction and are now going to rely on the Acquirers to manage this level of protection for customers. I do not think so!! With my many dealing w/acquirers i can assure you that this will get much worse before it gets better. Visa management at the last ETA meeting were actually laughing about this idiotic move by MC. Visa is aware that most house hold that have a MC have a Visa card and i do not believe, as others in my industry, that this will not affect "new" sales, though it will have a devastating affect on "recurring" sales. I think that MC will come to there senses before the new deadlines, MC is offering a 6 month extension to any PSP that request it, and we have formed a the IPSP council to have a unified voice w/MC. A meeting is setup and hopefully they will see the value that PSP provide and will amend the rule correctly.