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Protecting Merchant Profits: Ecommpay Expands to US and Offers Protection Against Chargebacks

Ecommpay, the international payment service provider and UK and European direct bank card acquirer, now offers local acquiring in the US – enabling UK and EU merchants to expand into North America.

Cross-border payments are set to reach $250trillion globally by 2027, with the US being a key market player. However, 3-D Secure (3DS) payments, which provide extra fraud protection for merchants, consumers and card issuers, remain optional in the US. In contrast, UK and European regulations have made 3DS mandatory to protect all parties.

Ecommpay data also reveals that merchants currently lose 1.7 per cent of their business turnover due to chargebacks from the US market. To combat this, Ecommpay will also offer protection from fraud-related chargebacks to ensure merchants do not lose valuable time and money when those chargebacks occur. With Ecommpay’s protection, the business turnover loss is reduced to around 0.5 per cent.

To protect its merchants and encourage better industry practices, Ecommpay now offers local acquiring for the US market with its fraud prevention and risk management solution. This move aims to secure merchants from the risks of low sales, chargeback arbitration fees (up to $500 per case), increased operational expenses, and potential time lost. Through this insurance offering, Ecommpay will cover all merchant expenses with only a small additional fee attached to each transaction.

“Helping UK and European merchants expand”

Olga Karablina, head of payment product development at Ecommpay, commented: “Providing the best, most secure options for our merchants is key when expanding our local acquiring reach. This move is part of our broader strategy to protect our merchant’s profits and put in place new measures that encourage long-term growth.

Olga Karablina, head of payment product development at Ecommpay
Olga Karablina, head of payment product development at Ecommpay

“This is not without its challenges. Mitigating the conversion issues when it comes to cross-border payments for our merchants has been tricky, but with our insurance for fraud-related chargebacks and our local acquiring abilities, we continue to set the benchmark within the payment industry.

“By understanding local markets and the interests of our merchants and customers, we remain on track to expanding Ecommpay’s presence to more and more international markets. Today’s announcement is a reflection of this commitment, helping UK and European merchants expand as we have already demonstrated in LATAM, Asia, South Africa and the Middle East.”

Ecommpay explained that a merchant generating sales of over $9,000,000 in the first six months of 2023 would have a chargeback rate of around 4.3 per cent – equating to $387,574. The payment service provider estimates that, with it new chargeback protection, the merchant would be able to save approximately $342,574, or 3.8 per cent, on their overall turnover.

Author

  • Tom joined The Fintech Times in 2022 as part of the operations team; later joining the editorial team as a journalist.

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