Automated Fuel Dispensers and Impacts to E-Commerce

Executive Summary


FiveBy anticipates that the recent shift in fraud liability for Automated Fuel Dispensers (AFDs) to comply with Merchant Category Code 5542 (MCC 5542) will unexpectedly impact the e-commerce space in 2021. Although this change will encourage stronger long-term fraud-prevention efforts from AFD owners/operators, FiveBy expects an increase in true-fraud cases for e-commerce processors in Q3 2021 as fraudsters race to monetize new card numbers from locations that remain vulnerable to card skimming. E-commerce platforms should prepare for this shift by implementing stronger customer validation strategies; and should expect to see additional pressure on fraud methods using stolen credit cards, which – according to industry figures – generates more than $25B annual losses in the US alone. Those who see significant increases in true-fraud card disputes are encouraged to reach out to FiveBy, experts in Fraud & Abuse detection and abatement services.

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