Updated: Jun 1, 2020
Hosted by Yitz Mendlowitz, CEO @ PAAY & Adam Gluck CTO @ PAAY
It’s no secret that e-commerce transactions have risen dramatically since global shelter-in-place orders began. The impact of COVID19 is unprecedented and has compelled businesses to pivot towards a business model that puts remote commerce first. The question is: How do you thrive in a system that’s traditionally rigged?
5 Key Takeaways
1. e-Commerce has grown significantly year over year, but since shelter in place orders began, the growth has become exponential. In fact, MasterCard announced that card-not-present transactions accounted for 50% of volumes in April 2020, up from 40% a year earlier.
2. Over the next 5 years the total cost of card-not-present fraud is projected to reach 490 Billion dollars. This includes cost of fraud tools, cost of losses from false declines, cost of lost & stolen fraud, and cost of chargeback fraud.
3. The payment is set up to protect card issuers and customers first. This is primarily due to the fact that rules & protocols were created at a time when the majority of transactions were card-present.
4. Over the last 20 years the networks rolled out a variety of solutions to mitigate fraud, however the liability for fraud was always on the merchant until 3-D Secure was released.
5. PAAY’s 3DS empowers merchants & mitigates the cost of fraud by:
Shifting chargeback liability from merchants to the issuing banks
Increasing approval rates by reducing the amount of false declines
Creating a frictionless experience that doesn’t affect cart abandonment
Ensuring less money is spent on fraud tools that lead to false declines
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