Payway, an integrated payment processing solution, announced that it has partnered with PAAY, a leading consumer authentication service for merchants. The partnership will add PAAY’s EMV 3-D Secure (3DS) to Payway’s gateway payment processing solution. The solution aims to reduce the risk of fraudulent eCommerce transactions. The solution is certified by Visa, American Express, Discover, and MasterCard. PAAY’s solution helps merchants increase approval rates, reduce fraudulent chargebacks, and stay compliant with global mandates.
The partnership allows Payway to offer eCommerce and subscription businesses a simple, straightforward solution. This will enable merchants to reduce the risks and costs associated with payment processing. With PAAY’S 3-D Secure, eCommerce merchants can authenticate cardholders before the transaction is sent for processing. As a result, the chargeback liability is shifted off the merchant account and onto the card issuer.
A new era of online commerce
Dan Nadeau, principal owner at Payway says, “We continues to enhance our award-winning payment solution through partnerships and native development. By partnering with PAAY, we can offer eCommerce businesses a payment gateway with the benefits of 3-D Secure and protection.”
“The pandemic ushered in a new era of online commerce and significant global changes. With this also came greater risk for false declines, fraud and abuse. Partnership with PAAY will help prepare and safeguard organisations, while still allowing customers to have a great experience shopping online.”
The partnership with PAAY provides multiple benefits for eCommerce companies when they choose to use Payway’s Payment Processing tool. This includes being PSD2/SCA compliant and compatibility with other fraud solutions. The “click-to-pay” solution takes advantage of EMV 3-D Secure. The solution is designed to make eCommerce payment processing more secure in real-time by providing an additional layer of security. It enables the exchange of data between the merchant, card issuer and when necessary, the cardholder. This is needed to validate that the transaction is being initiated by the rightful owner of the account.
Eliminating unnecessary chargebacks
PAAY’s EMV 3-D Secure sits between the shopping cart and the gateway, authenticating transactions in real-time with absolutely no lag. Distinct from fraud prevention tools, suspicious transactions will not be declined. All transactions go through as normal providing 100% frictionless commerce that does not interrupt the customer experience at the checkout. Everything happens in the background with no impact on the customer experience.
“Merchants can expect to see a 90% reduction in fraudulent chargebacks, if not greater. Reducing the risk of fraud is critical to the industry. We have seen eCommerce sales increase by over 30% in 2020,” said Yitz Mendlowitz, CEO, PAAY. “By eliminating unnecessary chargebacks, we are saving business owners time and money. It’s not just the cost of the chargeback itself – it’s time spent disputing chargeback fee from the processor, shipping. The cost of a chargeback is so much more than the chargeback itself.”
The true cost of fraud
The 2020 LexisNexis Risk Solutions True Cost of Fraud Study estimates fraud costs companies $3.36 for every dollar in fraud chargebacks. The costs includes fees, interest, merchandise replacement and redistribution per dollar of fraud for which the merchant is held liable.
“We’re always working to ensure merchants can provide customers a frictionless and secure payment experience without risking their bottom line. PAAY shares many of the values we do – commitment to customer satisfaction and providing more for less. Like us, they cater to eCommerce and subscription companies and are incredibly approachable. Pairing our respective solutions to deliver an enhanced offering was an easy decision to make,” says
Enterprise Times: What this means for business?
Consumers expect a smooth transaction across every channel. Retailers and eCommerce merchants have to add new payment mechanisms and expand channels into online, mobile and international sectors. However, they inadvertently create new opportunities for fraudsters. As a result, the web and mobile fraud landscape is continually changing. Businesses have to keep up with the latest fraud trends, as the fraudster become increasingly sophisticated. Technology and processes that worked yesterday may not be effective today. At the same time, online retailers must keep the user experience top of mind. Businesses have to hit the right balance.
Fraud detection technology that adds friction to account openings and transactions can result in angry customers and lost sales. If retailers want to reduce the impact 3DS have on their business, they need to shift their mindset. Enterprises should consider the payment flow as an integral part of the consumers’ shopping experience. It is a crucial element of their entire operation. Hence this partnership between Payway and PAAY which brings eCommerce and subscription companies enhanced protection.