[pbreit]

For example, from the Fed: "By number, the fraud rate for general-purpose cards was 3.60 basis points (3.60 unauthorized transactions per 10,000 transactions) and by value the fraud rate was 8.27 basis points."

https://www.frbservices.org/files/communications/pdf/researc...

Even the riskiest card-not-present/online merchant would rarely hit 1% or they lose their merchant account entirely.

I'd be curious to see what numbers you're looking at.

[Artemis2]

I should clarify, I was only talking about online payments, which I know a lot better than physical transactions.

From talking to some acquiring banks, I gathered that 1%-1.5% was the maximum fraud rate they would tolerate, depending on the value of your account. With fraud rates like that, you will not see volume discounts anytime soon either.