E-businesses may pay a higher discount rate than similar brick-and-mortar stores because of the card not present/card holder not present risk.

Question

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E-businesses may pay a higher discount rate than brick-and-mortar stores because of the increased risk of fraud and chargebacks when the card is not physically present during the transaction. This is commonly known as the card not present or card holder not present risk. To compensate for this risk, payment processors charge higher transaction fees or discount rates to e-businesses.

E-Businesses May Pay a Higher Discount Rate Than Similar Brick-And-Mortar