Payer Authentication Case Study
An existing BankCard Central merchant came to us with concerns about the cost of accepting credit cards. This particular merchant processed an average of $835,000.00 per month in Visa / MasterCard processing, over 12,000 transactions per month. In 2007 they had 144,370 approved Visa and MasterCard transactions and 216 chargebacks totaling $29,061.69.
Of those 216 Chargebacks:
- 85 of them totaling $13,768.08 would have been blocked by Visa had they been enrolled in Verified by Visa.
- 36 of them totaling $4,183.11 would have been automatically represented for payment by MasterCard had they been enrolled in MasterCard SecureCode.
- Over 56% of these transactions would have had some sort of protection with Payer Authentication whether the cardholders were enrolled or not.
The cost of Payer Authentication to this merchant would have been $1000 to set up and under $750 per month in authentication fees. In addition to preventing the almost $18,000 in chargeback fees it would have saved them over $16,000 annually in normal processing fees.
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