Low risk payment gateway

Low risk payment gateway is one of the most common methods to accept payments on your web. Data encryption and anti-fraud protocols are the main features of this type of payment gateway, therefore, low risk online businesses have it quite easy when obtaining a merchant in acquiring financial entity.

Characteristics of low risk business

A business activity is classified as a low risk when it has one of the following characteristics:

• It has zero or very low percentage of chargebacks.
• It has low or average sales ticket (0-70 USD).
• The country of incorporation of the company is not included in a list of high risk jurisdictions.
• The company has been operating on the market for at least one year and has a certificate of Good standing.
• The industry in which the business is developed is considered low risk.
• The website of the company complies with security protocols (Https, Refund policy).
• The company presents financial records of working with other financial entities.

Payment gateways of low risk run under the secure 3D security protocol, an additional layer that serves as protection in debit and credit card payments. 

What is 3D Secure protocole?

3D Secure is a security protocol designed by most powerful card brands that requires the card owner to validate or authorize the transaction using a personal PIN code.

Accepting payments with 3D secure protocol offers a lot of advantages for both, the client and the merchant.

Advantages of 3D secure protocol for the customer:

• Authorization is required (this step can´t be skipped);
• The customer obtains a higher level of security, very important fact during the process of deciding whether make a purchase on your web or no.
• No risk of additional or double charges without your consent, otherwise you will have to introduce PIN code twice.
• The card issuing bank can set anti-fraud rules to operate only in certain countries, currencies and under certain limit of amount.
• 3D Secure is a security feature which doesn’t include any additional costs for the customer.

Advantages of 3D secure protocol for the merchant:

• The merchant can assume higher risks and sell its products and services in countries with higher fraud rates.
• In case of fraud, the liability lies with the entity that has issued the card and not the merchant and acquiring bank.
• The bank provides this additional security protocol at no additional cost for the merchant.
• It is a great tool to reduce the number of chargebacks and refunds.

In spite of all the advantages that 3D secure brings to e-commerce, there are also some disadvantages that the client and merchant can face while operating with this additional security layer.

Disadvantages of 3D secure protocol for the client:

• 3D Secure authorization adds one more step to purchase process.
• It is necessary for the client to have his phone on hand to validate the operation.
• In case the client decides to present an unjustified chargeback to a merchant, the chances of winning the claim are minimal. The arguments such as "I have lost the card" or "I have not made this transaction" are not valid due to the fact that 3D secure protocol obliges a card holder to validate the purchase with a security PIN (3D) that is sent to his phone number.

Disadvantages of 3D secure protocol for the merchant:

• The client becomes more conscious about the process of purchase and what he is buying due to an additional step of authorization that he has to go through.
• MOTO channel (introducing data manually) can not be used to accept payments.
• The merchant can not make recurring collections of variable or fixed amounts.
• It is impossible to preauthorize the transaction.

Low risk payment gateway fees

* The activation of the low risk payment gateway is a one-time payment. No further monthly or annual maintenance fees are required. 

* The prices can vary depending on the commercial activity of the client and the level or risk his business involves. For any questions, please, contact us via e-mail, chat or by phone.