Credit Cards - Fraud Library

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Credit cards play a critical role in the online ecommerce alternative payment landscape. It is often said that if you aren't using credit cards then your not doing business online.

The major credit card brands – American Express, MasterCard, VISA and Discover – have been the online payment options of choice since e-commerce was born. Credit cards enable merchants to conduct international cross border transactions and greatly expand the potential for converting sales and gaining new customers.

Credit card online sales have continued to grow at a rapid pace and will continue to dominate the online payment landscape for some time to come.

The Fraud Practice works with merchants in all verticals around the world to negotiate and setup merchant accounts. We offer a free competitive analysis to any merchant looking to see if they can get a better deal on their merchant account. We know which acquirers and payment service providers support which verticals. We also know where you can get the best possible pricing terms. Through our relationships with over 14 acquirers we will competitively shop your deal discreetly. We typically can save merchants 20% to 60% on their existing rates.

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Credit Card Discussion

How Good are they?

In general credit cards are a reliable, convenient and safe way for a merchants to accept online payments. Credit cards have been shown to be important in all vertical markets around the world. However, Credit Cards have not been shown to be dominate in all parts of the world. Some countries and regions have preferences for alternative payments that are not based on credit cards. Credit cards charge what are called "interchange fees" which can range in cost and vary from country to country.

Pros and cons of credit cards include:

• Easy to implement

• Wide adoption

• Relatively secure

• Higher cost

• Limited to no fraud protection

Considerations When Implementing this Alternative Payment Method    

• Can credit cards be utilized by individuals in this region?

• Finding the right acquirer is critical. Depending on your vertical market, there may be a limited number of acquirers that will even talk with you. When looking to establish a merchant account you need to find an acquirer that supports your vertical market, your regional operations and who can provide you with value and support you need to run efficiently.

• We find that merchants typically are paying more than they should for these services. It is not just about the rates per transaction, you need to consider access to the service, reserve requirements, cross border support, monthly fees and alternative payment options.

• The Fraud Practice works with merchants in all verticals around the world to negotiate and setup merchant accounts. We offer a free competitive analysis to any merchant looking to see if they can get a better deal on their merchant account. We know which acquirers and payment service providers support which verticals. We also know where you can get the best possible pricing terms. Through our relationships with over 14 acquirers we will competitively shop your deal discreetly. We typically can save merchants 20% to 60% on their existing rates.

• What is the credit card implementation trend in this region?

Estimated Costs – To accept credit cards you need to have a merchant account. The fees associated with the merchant account are determined by your acquirer. The card associations set base rates for interchange and transactional fees but your acquirer will be the one that sets the rates you will pay above these base rates. Costs will vary based on the credit card association, type, plus other related fees (i.e. cross border).

Alternative Solutions – Specifically for accepting credit cards merchants should look into payment aggregators and credit term providers.

If you are in the market for new alternate payment options you should consider purchasing our Guide to Alternate Payment Options. A Guide to Alternative Payments is a prepared research document, 99 pages in length, intended to provide organizations an overview of the eCommerce alternative payment options and markets.  The Guide goes beyond a general market assessment to provide information businesses need to assess solution options and service providers.  The Guide also includes easy-to-understand reference tables on regional service providers (over 100 service providers), preferences and capabilities.

How Does it Work?  

Credit cards are part of a payment system that allows the card holder to purchase goods and services based on a promise that the card holder will pay for those goods and services. The card issuer grants a credit line to the consumer from which they can borrow money to pay a merchant. Merchants then pay the credit card companies a small percentage of every transaction for being able to use the card as a form of payment.

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