UK-based payment service provider and UK and European direct bank card acquirer Ecommpay has announced that it offers local acquiring in the US. Following the introduction of this new capability, UK and EU merchants will be able to expand into North America.

According to the official press release, the new acquiring offering was introduced to encourage industry practice and protect merchants. Ecommpay will reportedly also extend protection from fraud-related chargebacks for merchants. The new feature introduced by Ecommpay comes to address a pain point in the payments ecosystem.

As outlined in the official press release, even though global cross-border payments are estimated to reach USD 250 trillion by 2027, and despite US’s position in the market, 3DS payments, which offer extra fraud protection for merchants, consumers, and card issuers, remain elective in the US. This comes in contrast to the 3DS-related regulations introduced in the UK and Europe in an effort to ensure the protection of all involved parties. According to Ecommpay, the analysis of its data suggests that the lack of 3DS validation leads to fraud-related chargebacks.

Consequently, this reportedly causes a potential sales decrease of up to 30% in the US, thus amplifying the rate of chargebacks that impact merchants. The company further emphasised that, in terms of financial loss, this situation indicates that merchants lose 1.7% of their business turnover as a result of chargebacks from the US market. The newly introduced solution is anticipated to reduce this rate to 0.5%.

When discussing the news, a representative from Ecommpay outlined that a crucial aspect of expanding their local acquiring reach is to provide secure choices for their merchants. This step is purportedly aligned with their broader strategy to safeguard the profits of their merchants and establish new measures that promote sustained growth in the long run. Ecommpay’s strategy and previous developments Ecommpay is a payment service provider and direct card acquirer as well as an authorised payment institution that offers its services internationally under licences from the Financial Conduct Authority of the United Kingdom (FCA) and the Central Bank of Cyprus.

Its payment gateway merges direct acquisition capabilities, more than 100 alternative payment methods, and mass payouts within a single integration. Therefore, its product enables its ecommerce clients to accept payments from and issue payouts to customers worldwide. This is not the first solution launched by the company to deter fraudulent activities.

Earlier in 2023, the company announced that it integrated advanced graph analysis techniques to enhance its exclusive Risk Control Management System (RCMS). By leveraging this graph model, the payment service provider gained the ability to detect patterns of fraudulent behaviour and prevent fraudulent activities conducted in a chain. The new offering enabled the RCMS to recognise suspicious patterns of misconduct, including during periods of criminal inactivity.

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