Home > Features > Focus on Visa’s Euro Chargeback Policy • Bookmark   • Newsletters   • Register Search Options


Focus on Visa’s Euro Chargeback Policy

Focus on Visa’s Euro Chargeback Policy

September 16, 2016
Text size: 
View in Digital Mag
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
Yes, but in a few years
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.

" Merchants need to get their ducks in a row and should be working with their payment service providers to figure out long-term solutions for their business to stay in compliance. "

“May you live in interesting times,” or so the saying goes.

I’m not sure I’ve seen this much uncertainty in the financial industry since 2007 with continuing problems in Europe with the euro, the surprising victory for the U.K. to “leave” in the Brexit vote and the bankruptcy of Puerto Rico.

My strategy and our philosophy at Segpay has always been to deal directly with the issues that you know about or can plan for, keep your eyes open to what may be coming down the road and be ready to make adjustments as needed.

This of course is a good philosophy for any business and any industry but the adult market is even more prone to the significant and sudden changes set by the card schemes.

If you remember, back in April I wrote about the changes resulting from the Visa Inc. acquisition of Visa EU: “Effective July 1, 2016 Visa EU's more lenient policy of 2 percent and 200 chargebacks will be replaced by the more stringent 1 percent and 100 chargeback policy now used in North America.”

We’ve seen many merchants tackle this change and are prepared for the new compliance threshold. Others are implementing creative work arounds to keep the number of chargebacks below 100 by setting up multiple corporations and distributing volume across multiple accounts.

Although this may be successful in the short term, you have to expect that Visa will catch on to this work around. They will start matching names and principals and other verifications to reduce this type of activity. Merchants need to get their ducks in a row and should be working with their payment service providers to figure out long-term solutions for their business to stay in compliance.

At SegPay, we have noticed that U.S.-based merchants that are bringing their transactions back onshore are seeing some significant improvements. Higher through-put, lower chargebacks and reduced transaction fees are showing up on the bottom line. This is a stronger, long-term strategy that will allow merchants to be prepared to implement additional changes that are sure to be coming from Visa in the future.

Merchants looking to reduce European chargebacks can implement additional strategies to stay within compliance. There are two areas I’d like to bring to your attention.

Secure Code, which will become more prevalent in the European market, is one of them. This additional verification step during checkout may initially result in more consumers abandoning the payment process. However, U.S. customers are not as familiar with the process and one additional step, might be just one too many for some horny, I mean impatient, consumers.

I also recommend that merchants implement third-party verification services such as Verifi and Ethoca to prevent fraudulent activity. These services reduce chargebacks by alerting merchants to charges that could be problematic. Merchants then have the ability to refund fraudulent charges to consumers in a timely manner thereby preventing a chargeback.

At Segpay, we continue to stay abreast of these developments and help our clients make the right choices for their unique situations. We are continuing to improve our admin panel, expanding our product offerings and bringing on new partners where beneficial. Implementing the new Visa Inc. changes in Europe will be beneficial for merchants in the long run.

It took only three years for Cathy Beardsley to turn startup SegPay into a profitable company. As president and CEO, Beardsley oversees the day-to-day operations and long-term strategic planning for the company. SegPay is one of four companies approved by Visa USA to operate as a high-risk Internet payment service provider in the U.S. Since 2005, SegPay has offered online merchants a state-of-the-art billing platform that provides real-time payment processing around the globe.


Understanding 'Camming Sociology' Can Enhance Interactions

After working for six years in the live cam industry as a cam model and almost double the amount of time studying — while working simultaneously — how relationships work in cyberspace, I am... More »

Proper Fisting Techniques for Gentle Stimulation

Does the phrase “anal fisting” make your sphincter clench in terror? Does it seem like an urban legend or an extreme party trick? Most people scoff at the idea of trying it because it sounds... More »

Camming Games, Contests Keep Customers Engaged

Last issue, I talked about the importance of changing up the ambience in a cam model room via new décor and small visual tweaks, to keep viewers engaged long-term. This time, I’d like to discuss... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.


XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida

XShow 18+ 2017

Jun 01 - Jun 03
Moscow, Russia

Cam Summit

Jun 02 - Jun 04
Lloret de Mar, Spain
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!