What is Interchange?

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To provide an incentive for issuing banks to issue more cards and acquiring banks to add more merchants and thus expand the network, the bank card brands established interchange.  Interchange allocates the costs and revenues of the completed transaction between the issuing bank and acquiring bank.

Interchange fee is essentially a compensation vehicle.  It helps ensure the cooperation and participation of the various parties in the payment processing system by balancing the incentives to increase the base of merchants accepting the card and the base of consumers using the card.  The value of the card to cardholders is higher if more merchants take the card and the value of the card to merchants is higher if more cardholders use the card.

Interchange fees are subject to increasingly intense legal and regulatory scrutiny worldwide which may have a material adverse impact on revenue, prospects for future growth and overall business.

Paynetsecure.net provides innovative ecommerce payment processing solutions.

Load Balancing for High Risk Processing

Many high risk merchants have more than one merchant account. The reason is easy to understand.

Relying on a single bank for high risk processing is no longer viable. Underwriting guidelines change. Banks get acquired or merge. And often times, a bank will simply decide to exit the high risk processing business.

To mitigate risk and safeguard business operations, companies establish more than one merchant account. Yet, unless all account can be boarded on a single gateway, administration and management becomes a nightmare.

What is Load Balancing?

The term load balancing means you can dynamically switch processing among different merchant accounts.

Load balancing on a payment gateway enables you to board multiple merchant accounts on one gateway.  And manage all accounts through one dashboard.

Load balancing allows you to mitigate risk, maximize processing volumes, and easily manage accounts.  Accounts can be dynamically configured with a myriad of parameters to obtain the best payment processing results.

Benefits of Load Balancing

One of the primary benefits of managing multiple merchant accounts through a single payment gateway is the ability to simply accounting, customer service, and management functions.

Consider a company that has 3 different merchant accounts.  Without a gateway that can accommodate more than one account, the company would need 3 different payment gateways.

Each gateway requires its own login and password.  Each is associated only with the transactions that are run through a single merchant account.  There is no global overview of all accounts.  Details on each must be compiled separately.  Managing and reconciliation of accounts is difficult.

But, if the company puts all 3 merchant accounts on a single payment gateway and load balances, the picture changes. 

Merchant accounts can be viewed globally or individually.  Reporting is consolidated.  Account reconciliation is easy.  Redundancy of function is eliminated and productivity is increased.


High risk merchants often have more than one merchant account. When all the accounts are boarded on a single gateway, processing can automatically be load balanced between all accounts. Management and administration of all accounts is is simplified, saving time, effort & money.

How are you managing your high risk merchant accounts?

Contact info@paynetsecure.net today 


Location Matters

Cybercrime continues to march forward.  More than ever, you must be diligent in tracking where orders are originating from. There are certain locations that present significantly greater risk of fraud for online merchants

Amazingly, some merchants are not taking even the most basic precautions in protecting against fraudulent transactions.  If fraud is not controlled, your merchant accounts can be put at risk.  

Geolocation Tools Within Payment Processing Gateways

The simplest way to track, change, block, and manage order locations is to enable the tools in a payment processing gateway.  High risk processing gateways have particularly robust geolocation management tools.  

The gateway gives you the ability to track orders, block orders, hold orders for manual review, and a wide range of other options.  Geolocation services are easy to turn on. And provide you extensive protection at a very low cost.

Geolocation to track where orders are originating from is a basic part of fraud protection.  Both standard and high risk merchants  are wise to use the gateway to help control fraudulent transactions.  

Other Tips to Prevent Fraud

Here are 7 more easy-to-implement ways to reduce ceommerce fraud:

  • Use Address Verification System (AVS) whenever possible
  • Require the buyer input the the 3 or 4 digit code on the back of the credit card
  • Check the Bank Identification Number (BIN)
  • Use Negative/Positive database to screen out buyers with histories of bad transactions
  • Check for consistency between card holder’s claimed location and computer’s IP address
  • Block transactions from IP in countries which are notorious for fraudulent transactions
  • IP and ISP confirm the ISP of the IP address


Enabling geolocation and other fraud fighting tools in your payment gateway goes a long way to protect you from fraudulent transactions.  

Cybercriminals seek vulnerable merchants to prey upon. Don’t be an easy target. Protect your business using the tools that are readily available in your payment processing gateway.  

How are you protecting your business against fraud?

Contact info@paynetsecure.net today


Fraud is Rampant Online

Fraud is exploding on the internet. 

Cybercriminals constantly hunt for vulnerable ecommerce sites.  Every day fraudsters exploit unwary merchants and steal millions. 

And, it’s not just thieves. 

“Friendly fraud” comes from real buyers who simply know how to work the credit card system in their favor.  They deny receiving merchandise or say it was never ordered in the first place. Chargeback prevention and migration is more important than ever. 

Payment Gateway Fraud Fighting Tools

It’s crucial for both standard & high risk merchants to take advantage of the tools that are readily available through the payment processing gateway in order to fight fraud.  

Extra protection is simple to implement. And provides you with an extensive array of fraud fighting tools at a very low cost.

The rule-set based fraud management utility on the payment processing gateway lets you setup a myriad of filters to help detect fraud and screen suspicious transactions. Detailed reporting give you a quick and easy way to review transactions, block suspicious activity, and zero in on malicious users.

A good fraud protection system is controlled by you and can be dynamically reconfigured to meet the changing demands of the marketplace. You can

  • Maintain good and bad customer lists
  • Create and edit processing controls
  • Restrict or allow access by banning IP addresses, counties, zip codes or any other geographic variable
  • Set controls to filter for email address, transaction count, dollar amounts, velocity checks and a variety of other parameters.

Properly set fraud filters eliminate the majority of fraudulent transactions in real time. The selected filters can be customized for each merchant, which are continuously updated to keep the you one step ahead of the fraudsters.


Put your payment gateway to work for you. Enable the extensive fraud-fighting tools within the gateway to protect your business.  Gateway fraud prevention services are a low-cost, highly effective way to safeguard your payment processing.

How are you protecting your business against fraud?

Contact info@paynetsecure.net today