Partnership Brings eCommerce and Subscription Companies Enhanced Protection
Payway®, an integrated payment processing solution, announced today 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 to reduce the risk of fraudulent eCommerce transactions. 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 will now allow Payway to offer eCommerce and subscription businesses a simple, straightforward solution for 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 and, as a result, the chargeback liability is shifted off the merchant account and onto the card issuer.
“Payway continues to enhance its 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,” said Dan Nadeau, principal owner, Payway. “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. A partnership with PAAY will help prepare and safeguard organizations, 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, including being PSD2/SCA compliant and compatibility with other fraud solutions. The “click-to-pay” solution takes advantage of EMV 3-D Secure, 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 to validate that the transaction is being initiated by the rightful owner of the account.
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 as we watched 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, the chargeback fee from the processor, shipping. The cost of a chargeback is so much more than the chargeback itself.”
According to the 2020 LexisNexis Risk Solutions True Cost of Fraud Study**, it is estimated that the total amount of costs related to fees, interest, merchandise replacement and redistribution per dollar of fraud for which the merchant is held liable—shows fraud now costs companies $3.36 for every dollar in fraud chargebacks.
“We’re always working to ensure merchants can provide their customers a frictionless and secure payment experience without risking their own 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.” Kimberly Miller, vice president, Business Development
Payway is a proven payment service provider that helps card-not-present and subscription businesses simplify and accelerate transaction processing leading to improved cash flow and significantly lowering the costs associated with accepting recurring payments.
Payway has decades of experience in managing card-not-present payments and provides their customers the most up-to-date security features. Payway built their user-friendly payment processing solution to be responsive to the needs of organizations who operate a recurring payment business model, like the many publishing and media companies they’ve served since 1984. For more information, visit payway.com
PAAY is a leading innovative consumer authentication service for merchants that is simple, secure, and seamless to implement. PAAY’s frictionless EMV 3-DS solution empowers eCommerce merchants to grow their business securely by increasing authorization rates and eliminating friendly fraud while meeting all network security and compliance needs. PAAY’s mission is to give merchants choice and control of their destiny. To learn more visit PAAY.co
ERIN K FARRELL-TALBOT
Farrell Talbot Consulting