Running an ecommerce business is far more involved than just getting products online and making sales. Ecommerce compliance is the rulebook you need to follow, touching everything from customer privacy to payment security, ad regulations, and how you handle refunds or subscriptions.
So, what does “compliance” actually cover? It’s the set of laws and industry standards designed to keep online shopping safe and fair:
- FTC rules protect customers from misleading ads and hidden fees.
- PCI DSS enforces secure payment systems to guard credit card data.
- GDPR (in Europe) and similar laws elsewhere require you to handle personal data with care.
- Local, national, and international laws also set the ground rules for selling across borders, protecting consumers, and paying the right taxes.
This page will break down the essentials (no lawyer-speak, just straightforward advice) on:
- Payment and card brand rules (what Visa, Mastercard, and your processor really care about)
- FTC and FDA regulations, especially for verticals like supplements, coaching, or digital goods
- Making your ads and subscriptions totally above-board—and how to avoid getting banned or fined
- Spotting “red flags” in payment processing and onboarding, so your account doesn’t get shut down
- Rules for selling into the US, UK, EU, and worldwide: privacy, data, and tax compliance made clear
- Why your checkout flow could make or break compliance, and what you can do to get it right
Most importantly, you’ll see what problems all these rules are meant to solve: protecting your revenue, your customer relationships, and your company’s future. By following this our guide, you’ll know exactly what to expect, how to fix gaps, and how to keep your business running smoothly.
Card Brand Rules and Payment Processing Standards
Card networks like Visa and Mastercard enforce strict requirements that directly impact how you process payments and present your business online.
These rules protect both consumers and the payment ecosystem, and noncompliance can result in account shutdowns or hefty fines.
Visa and Mastercard 2025 Requirements
Card brands updated their standards considerably for 2025, creating new obligations for ecommerce merchants.
Your website must display the legal or DBA name that appears on customer statements. Visa’s 2025 Merchant Data Standards call mismatched names a data-integrity violation.
Every product page needs clear pricing displayed in the correct currency next to the “Add to Cart” button.
Your refund policy must be visible before payment submission, ideally on the checkout page itself.
Payment pages must load over TLS 1.2 or higher with HSTS enabled, and all third-party JavaScript must pass integrity checks mandated by PCI DSS v4.0 requirement 6.4.3.
Merchants also need automated change-detection for any element that touches card data. They must also deploy 3-D Secure 2 or another strong-customer-authentication method for repeat billing transactions.
Visa now requires that the HTML merchant-name tag, MCC, and country on your website mirror the details your acquirer submits to VisaNet.
The Visa Acquirer Monitoring Program levies penalties once the combined fraud-and-dispute ratio crosses 0.9%. High-risk verticals (including supplements, CBD, digital goods, and more) face extra due diligence via the Visa Integrity Risk Program, which demands age or KYC checks and explicit descriptor registration.
PCI DSS 4.0 Compliance
The Payment Card Industry Data Security Standard (PCI DSS) version 4.0 became mandatory as of March 31, 2025. This updated standard introduces 51 new requirements designed to combat digital skimming and protect cardholder data.
All companies processing, storing, or transmitting credit card information must maintain a secure environment. This means implementing robust encryption methods, maintaining a secure network, and regularly testing security systems.
Ecommerce merchants must inventory and maintain an up-to-date list of all authorized scripts on payment pages, verify their integrity, and implement reporting infrastructure to identify violations.
Requirements 6.4.3 and 11.6.1 specifically target ecommerce environments. Merchants must confirm that their site is not susceptible to script-based attacks that could affect their payment systems. All elements of the payment page (forms, scripts, and iframes) must come exclusively and directly from a PCI DSS-compliant third-party service provider.
For detailed guidance on ecommerce compliance fundamentals, review this helpful guide to e-commerce compliance that covers essential security and legal requirements.
CHECKOUT COMPLIANCE MADE SIMPLE
FTC and FDA Compliance Requirements per Industry
Different product categories face distinct regulatory requirements from federal agencies. Understanding which rules apply to your vertical prevents costly violations and protects your business from shutdown.
FTC Advertising and Marketing Compliance
The Federal Trade Commission mandates that all advertising must be truthful, not misleading, and substantiated. Ecommerce companies must avoid making unverified claims and should always include disclaimers where necessary. If a product claims health benefits, these claims must be backed by scientific evidence.
Disclosures required to prevent deception must be presented “clearly and conspicuously“. What matters is the overall net impression of the ad upon reasonable consumers; whether the claims consumers take from the ad are truthful and substantiated.
For space-constrained ads, incorporate the disclosure into the ad whenever possible. If that’s not possible, the disclosure must appear clearly and conspicuously on the page to which the ad links.
Material connections between endorsers and marketers must be disclosed. This includes any financial, employment, personal, or family relationship with a brand. The FTC requires disclosures to be clear and conspicuous, using simple language like “ad” or “sponsored”.
Place disclosures close to endorsements and avoid using ambiguous terms.
The FTC can shut down businesses that violate consumer protection laws. The agency usually tries to resolve issues through settlements or consent orders first. But if a business continues deceptive practices, the FTC can file lawsuits, impose hefty fines, and order businesses to cease operations.
Learn more about how the FTC can shut down a business and what triggers enforcement actions.
Negative Option Rule and Subscription Compliance
The FTC’s updated Negative Option Rule, known as the “Click to Cancel” rule, took effect in July 2025 after a delay. This rule makes it easier for consumers to cancel recurring subscriptions and applies to all negative option features: prenotification plans, free trials, automatic renewal plans, and continuity plans.
Merchants must conspicuously disclose that payment is recurring and obtain informed affirmative consent to the negative option separate from any other part of the offer. This means customers must affirmatively check a checkbox, not uncheck a pre-checked box.
For more details on implementing compliant subscription checkboxes, read this comprehensive breakdown of the FTC Negative Option Rule.
Cancellation must be available in the same medium as the signup. Sellers cannot pitch additional offers to prevent cancellation until they receive informed consent from the customer to receive marketing offers.
For digital subscriptions, annual reminders about cancellation must be sent to customers.
Mastercard enforces similar requirements: you must place price and billing cadence text directly above the pay button, send immediate email confirmation with a one-click cancel link, and issue a reminder at least seven days before the next charge when a free or low-cost trial ends.
FDA Requirements for Food, Supplements, and Health Products
The FDA regulates dietary supplements, food products, and health-related claims sold online. While dietary supplements are less regulated than pharmaceuticals, they still fall under FDA jurisdiction. Sellers must ensure that products don’t make unverified health claims and are safe for consumption.
If you sell supplements or health products, you cannot say your product will cure diseases or guarantee specific health outcomes. Structure/function claims describe how a nutrient affects normal body function.
If a dietary supplement label includes such a claim, it must include a disclaimer stating that FDA has not evaluated the claim. The disclaimer must also state that the product is not intended to “diagnose, treat, cure or prevent any disease,” because only a drug can legally make such a claim.
Online retailers selling tobacco products face stringent age verification procedures and must ensure products meet federal standards for labeling and health warnings. FDA encourages online retailers to use adequate means of age and identity verification to prevent sales to individuals under 21 years of age.
Pharmacies selling prescription drugs online must adhere to the Ryan Haight Online Pharmacy Consumer Protection Act.
All food product information must be current, especially for ecommerce websites. Since formulations change over time, and with the upcoming requirement to label sesame as the ninth required food allergen under FALCPA, all food product information must be current.
Business Opportunity Rule Compliance
The FTC is expanding its Business Opportunity Rule to include coaching services, ecommerce merchants, and investment opportunities. This rule requires sellers of certain business opportunities to provide potential customers specific information before they buy, including a disclosure document containing information about the business and associated risks.
Sellers must provide potential buyers with specific information about earnings claims, contact information for the FTC, and a three-day cooling-off period during which buyers can cancel and receive a full refund.
For coaching businesses specifically impacted by this expansion, detailed guidance is available in this guide to FTC Business Opportunity Rule compliance for coaching.
Advertising Policy Compliance Across Platforms
Digital advertising platforms enforce their own compliance standards in addition to federal regulations. Violations can result in ad rejection, account restrictions, or permanent bans.
Facebook and Meta Advertising Standards
Meta advertising policies became stricter in 2025, with AI-driven review processes flagging ads that border on policy violations. The platform applies Facebook ad guidelines with little tolerance, and accounts that violate guidelines can be disabled very quickly, sometimes automatically.
Ads must be truthful and not designed to mislead or defraud users. All advertising content should enhance rather than detract from the Facebook experience, avoiding disruptive or offensive content. Users should always know who’s behind the ads they see, with clear disclosure of sponsorship and business information.
Facebook’s Special Ad Category restricts targeting for housing, credit, and employment ads. When advertising falls into these categories, targeting by age, zip code, or certain specific interests isn’t allowed.
Meta Lead Ads rules updated in October 2025 clarify that advertisers (as data controllers) are fully responsible for obtaining, managing, and storing consent in line with European privacy laws.
Google Ads Compliance
Google’s Personalized Advertising Policy also restricts targeting for certain industries, particularly senior living and 55+ communities. Businesses need to understand that targeting people by age, zip code, or specific interests isn’t allowed for restricted categories.
For both platforms, you must maintain transparent and compliant ad copy and landing pages. It’s wise to have backup account structures or appeals processes ready if you rely heavily on these platforms.
FTC Dot Com Disclosure Guidelines
The FTC’s .Com Disclosures guide applies to all online advertising. If an advertisement makes express or implied claims that are likely misleading without certain qualifying information, the information must be disclosed. A disclosure can only qualify or limit a claim to avoid a misleading impression; it cannot cure a false claim.
Whether a disclosure meets the “clear and conspicuous” standard is measured by how consumers actually perceive and understand the disclosure within the context of the entire ad. Factors include the placement of the disclosure and its proximity to the claim it qualifies, the prominence of the disclosure (size, color, graphics), whether the disclosure is unavoidable, and the extent to which other items might distract attention from the disclosure.
Examining real-world examples helps illustrate these principles. This analysis of Agora’s FTC compliance mistakes shows how even large publishers can violate advertising rules and what you can do to avoid similar problems.
Social Media and Influencer Disclosure Requirements
The FTC requires social media influencers and anyone endorsing products online to clearly and conspicuously disclose any “material connection” with brands. Material connections include being paid, receiving free or discounted products, or having a personal, family, or employment relationship with the brand.
Disclosures are necessary whenever an influencer has received anything of value to mention a product, even if not directly paid or even if the product or service was given with no obligation to post. These requirements apply even when posting from abroad if US consumers could be affected.
- Disclosures should be impossible to miss and placed with the endorsement message itself, not hidden in profiles or mixed with a group of hashtags or links.
- On photos and videos, superimpose the disclosure over the image or include it in the audio and on-screen text so viewers can’t overlook it.
- Disclosures must be repeated periodically during live streams, and should be made in the same language as the endorsement.
- Use straightforward language. Terms like “ad,” “advertisement,” “sponsored,” or “thanks to [Brand] for the free product” are acceptable. Avoid vague or ambiguous terms such as “sp,” “spon,” “collab,” or “thanks” without more context. Platform-provided disclosure tools alone may not be enough.
Influencers must not exaggerate or invent experiences. They can’t say something positive about a product they dislike or haven’t tried, and they can’t make health or other claims that require scientific proof if that proof doesn’t exist.
Reserve Requirements and Onboarding Red Flags
Payment processors assess risk through reserves and underwriting requirements. Understanding these mechanisms helps you navigate the approval process and maintain account stability.
Payment Processing Reserves
Payment processors assume liability for merchants they underwrite. When your industry carries higher risk of chargebacks, fraud, or regulatory oversight, processors mitigate exposure by withholding a portion of your revenue. This reserve serves as a buffer against potential losses.
Rolling reserves are the most common type, where processors hold a percentage (typically 5-10%) of each transaction for 180-365 days before releasing it. Upfront reserves require a lump sum before processing begins, more typical for extremely high-risk or newly established businesses. Hybrid reserves combine both approaches. For example, 5% rolling plus an upfront reserve for high-value transactions.
Reserve requirements exist because chargebacks can result in losses for the processing bank. To avoid potential losses, many merchant accounts require reserves, especially for businesses selling internationally where cross-border transactions come with higher fraud risks, stricter regional compliance rules, and currency fluctuations.
High-Risk Industry Classifications
Certain industries face automatic high-risk classification. Subscription-based ecommerce merchants offering monthly boxes, continuity subscriptions, or auto-renewal services often face higher reserve demands due to chargeback potential. Nutraceuticals and supplements trigger reserves due to health claims, trial offer abuse, and inconsistent fulfillment timelines.
CBD, gambling, adult entertainment, and crypto trading platforms are among the highest-risk verticals. Many processors won’t approve these businesses without strict reserve policies and compliance reviews.
Tactical gear, firearms, and other regulated goods face heightened scrutiny, especially when systems lack VBV (Verified by Visa) protections.
Red Flags That Trigger Account Reviews
Payment processors monitor specific warning signs that can lead to account restrictions or shutdowns. Excessive chargebacks or fraudulent activity top the list. If a merchant exceeds the card network thresholds (0.65% for Visa and 1% for Mastercard), they may incur fines, and at excessive amounts (1.5% or higher), the account could be terminated.
Violated terms of agreement occur when merchants process above agreed-upon limits without notifying their processor. Essentially, a merchant account is a line of credit, and banks need to know how much risk they’re taking on beforehand.
Operating in a prohibited or high-risk industry without proper disclosure also triggers shutdowns.
Communication pattern changes often signal problems. Delayed response times, generic responses, escalation requirements for simple requests, and reduced proactive communication all indicate declining confidence. Excessive documentation requests—asking for documents already provided, granular transaction details, updated business information that hasn’t changed—suggest the processor is building a case for termination.
Avoiding Merchant Account Termination
Once a merchant account is terminated, your acquirer is required to add you to the MATCH List (Terminated Merchant File). Being MATCHed makes it much more difficult to find processors willing to work with you, even high-risk providers.
Removal from the MATCH List is possible, but only under limited circumstances.
To prevent account termination, maintain low chargeback ratios consistently below 1%. Use Verified Payment Tools like VBV or 3D Secure, which add a layer of protection that shifts liability to the card issuer. Implement transparent billing descriptors and customer service practices. Keep detailed transaction records, maintain accurate processing history, and ensure your business model matches what you disclosed during onboarding.
For specialized needs, particularly in challenging verticals like visa services, this guide on keeping your online visa services business legal provides industry-specific compliance strategies.
AVOID THE MATCH LIST
Chargeback Monitoring and Dispute Management
Card networks actively monitor merchant chargeback performance through formal programs with specific thresholds and consequences.
Visa Chargeback Monitoring Program (VAMP)
Visa consolidated its monitoring initiatives into the Visa Acquirer Monitoring Program (VAMP) effective April 1, 2025. VAMP tracks merchants monthly based on number of chargebacks and chargeback-to-transaction ratio (CTR).
The VDMP Early Warning threshold triggers when a merchant approaches but does not exceed the standard threshold, between 0.65% and 0.9% chargeback ratio. No penalties apply, but it serves as notice to improve practices.
VDMP Standard triggers with more than 100 chargebacks in a month and a chargeback ratio greater than 0.9%.
VDMP Excessive triggers with more than 300 chargebacks in a month and a chargeback ratio greater than 1.8%.
VAMP offers tools to prevent first-party fraud and verify transaction legitimacy, reducing the likelihood of fraudulent chargeback claims. Chargeback alerts tell merchants when a chargeback has been initiated, giving them time to address the claim and present relevant evidence.
Mastercard Excessive Chargeback Program
Mastercard maintains its own monitoring program with a 1.0% threshold for standard monitoring. The network’s updated BRAM guidelines prohibit deepfake content, drug sales without e-prescriptions, and hidden fulfillment jurisdictions.
Reducing Chargeback Risk
Use fraud prevention tools including Address Verification Service (AVS) and CVV checks. Enable 3D Secure (Visa Secure) to authenticate buyers and flag suspicious transactions with fraud filters. Provide clear product descriptions, transparent pricing with all fees disclosed upfront, and accurate shipping timelines.
Monitor transactions actively, tracking chargeback ratios monthly and reviewing unusual spikes in disputes. Keep good records: save receipts, shipping confirmations, and customer communications to provide compelling evidence if you choose to dispute chargebacks.
The Visa Merchant Purchase Inquiry Program (VMPI) helps merchants respond to customer disputes before they become chargebacks. When a cardholder disputes a transaction, merchants can provide enhanced data to the issuer, who then uses the data with the cardholder. While VMPI doesn’t prevent chargebacks completely, Visa found it reduced chargeback dispute rates by 14% during pilots.
International Laws for Cross-Border Processing
Selling across borders introduces additional regulatory complexity around data privacy, consumer protection, and tax compliance.
GDPR Compliance for EU Customers
The General Data Protection Regulation (GDPR) mandates stringent handling of personal data, emphasizing consent, transparency, and the right to be forgotten. Ecommerce sites must ensure explicit consent for data collection, enabling customers to easily access, rectify, and delete their information.
GDPR requires businesses to get clear consent before tracking user behavior. No more sneaky pre-checked boxes. Allow data deletion requests, as customers can ask you to erase their information. Appoint a Data Protection Officer if you process large-scale personal data.
Failing GDPR compliance can result in fines up to €20 million or 4% of annual turnover, whichever is higher.
For ecommerce, a transparent and comprehensive privacy policy is the cornerstone of compliance. Essential elements include:
- the identity of the data controller
- complete list of data collected during purchases
- purpose of processing
- data retention periods
- legal basis for each processing operation
- individual rights and how to exercise them
- list of processors with access to data
- safety measures in place
UK Data Protection Act and Brexit Considerations
The UK GDPR and Data Protection Act 2018 govern data protection in UK ecommerce businesses. Businesses must handle customer data in compliance with data protection laws, including obtaining appropriate consent, ensuring secure data storage, and clearly communicating data handling practices in a privacy policy.
The ICO has warned 134 of 200 UK websites for failing to meet cookie compliance standards as part of its strategy to bring the UK’s top 1,000 websites into compliance. The upcoming Data (Use and Access) Bill will increase maximum fines for privacy breaches from £500,000 to £17.5 million or 4% of annual worldwide turnover, aligning with UK GDPR penalty levels.
Most ecommerce businesses must pay the annual ICO data protection fee, conduct Data Protection Impact Assessments for high-risk processing, and maintain 72-hour breach reporting capabilities.
Establish clear data protection responsibility, conduct regular data audits mapping all personal data flows, and implement privacy by design principles.
Cross-Border Tax and Customs Compliance
International tax compliance is an unavoidable component of successful cross-border operations. Each country maintains specific registration thresholds for foreign sellers. Once a business exceeds these thresholds, they must register for VAT/GST in that jurisdiction.
The EU requires non-EU businesses to register for VAT from their first sale, while other countries set annual revenue thresholds ranging from $10,000 to $100,000. The complexity increases when dealing with digital products and services, which often face different tax treatment than physical goods.
Customs reforms in the EU establish platform liability, with online marketplaces responsible for collecting duty and VAT and ensuring goods comply with EU standards. Platforms must provide detailed product information to EU customs authorities before goods enter the EU. The removal of duty exemptions means all imports now face proper valuation and taxation.
The WCO Framework of Standards on Cross-Border E-Commerce promotes harmonized approaches to risk assessment, clearance, revenue collection, and border cooperation. A legal and regulatory framework should be established requiring advance electronic data exchange between relevant parties involved in ecommerce.
Digital Services Act and Platform Obligations
The EU Digital Services Act (DSA) obligates online platforms to combat the sale of illegal goods. This includes implementing user-friendly notice-and-action and complaint mechanisms, banning dark patterns, adhering to advertising rules, and fulfilling detailed transparency obligations.
The “Know Your Business Customer” obligation requires marketplaces to collect information on traders before they can offer products on the platform. Online marketplaces must disclose why people see specific information and how algorithms recommend products or content. Consumers also have the right to select a recommendation system not based on profiling.
Checkout Compliance and Avoiding Shutdown
Your checkout experience serves as the final compliance checkpoint before completing transactions. Getting it right protects both your customers and your business.
Essential Checkout Elements
Display your legal/DBA name that will appear on customer statements in the header or footer of every page.
List the final price in the correct currency next to every “Add to Cart” button.
Provide a one-click link or checkbox to your refund/return policy before the payment button.
Show a statement descriptor cue such as “Charge will appear as ACME-Widgets” near the pay button.
A real street address, phone number, or email must appear on the checkout page to satisfy card-brand contact requirements.
Feature up-to-date card-brand logos in the footer.
Repeat your statement descriptor beneath the pay button.
Security and Trust Indicators
Display security certifications and trust seals prominently, including SSL certificates and PCI compliance badges.
These signs of confidence reassure customers that their personal and financial information are secure. Security seals and badges should be prominently placed near the payment method or checkout button.
Implement HTTPS protocol for secure data exchange. Use PCI-DSS-compliant secure payment processing.
Employ encryption of sensitive data and limit access to customer data following the principle of least privilege.
Conduct regular backups and maintain business continuity planning.
Transparency and Disclosure Requirements
Pricing disclosures must state full prices including taxes, handling fees, or currency conversions.
Avoid hidden costs; they’re the fastest way to get complaints or legal action.
Product disclosures should describe items truthfully and include warnings, material disclosures, age restrictions, or disclaimers. This is especially important for cosmetics, food, supplements, or tech.
If you earn money from affiliate links or partnerships, it must be clearly disclosed.
For subscription services, display price and cadence text directly above the pay button. Send immediate email confirmation with a one-click cancel link.
Strong Customer Authentication (SCA)
Comply with Strong Customer Authentication requirements for authenticating online payments in Europe. The EU’s PSD2 and SCA requirements mandate additional layers of security for transactions.
Implement 3D Secure 2 or another strong-customer-authentication method for transactions.
Accessibility Compliance
The Americans with Disabilities Act (ADA) mandates that digital content, including ecommerce platforms, must be accessible to individuals with disabilities. This includes providing alternatives for visual content, ensuring website navigability through screen readers, and offering options for those with limited mobility.
Accessible, mobile-friendly sites that meet WCAG-AA guidelines increasingly receive preferential placement in AI-powered search results. Both Visa and Mastercard advise this as a best practice for 2025.
Preventing Account Shutdowns
If your acquiring bank closes your merchant account or suspects imminent danger, you need to act fast. Contact your processor immediately to understand the reason, review your chargeback and transaction history, and check if your business was added to the MATCH list.
Monitor transaction patterns to avoid red flags. Maintain low chargeback ratios and ensure compliance with processor guidelines. Keep a strong record of financial activities and adhere to all contract terms. Document compliance efforts and maintain records of advertising materials.
Building a Compliance-First Culture
Compliance is an ongoing commitment that requires organizational buy-in and continuous monitoring.
Regular Compliance Audits
Conduct quarterly compliance reviews covering payment processing standards, advertising claims, data privacy practices, and industry-specific regulations. Engage in continuous assessment of hardware and software. Document all compliance efforts and maintain detailed records of procedures.
Perform data mapping exercises to identify all points where data is collected across your platform, including checkout pages, email sign-up forms, payment processors, and analytics platforms. Map all processors with access to customer data and sign subcontracting agreements (Data Processing Agreements) that comply with Article 28 of GDPR.
Staying Informed About Regulatory Changes
Regulations can change frequently, particularly in the ecommerce space. Stay updated on legal requirements by regularly checking with local authorities and industry associations. Monitor regulatory changes through tax authority notifications or compliance software updates.
Subscribe to updates from the FTC, FDA, card networks, and relevant industry bodies. Seek expert advice and don’t shy away from consulting legal experts. Consider them strategic allies in navigating the complex world of business law enforcement.
For emerging technologies like AI, stay aware of new regulations. This overview of FTC AI regulation with the new Impersonation Rule shows how regulatory frameworks are expanding into new areas.
Technology and Automation
Invest in compliance management software that automates many routine tasks. Use tax compliance software for accurate calculations across jurisdictions. Implement subscription management platforms that handle consent, cancellations, and billing in compliance with regulations.
Payment processors like Stripe, PayPal, and Adyen often include compliance tools within their platforms. Choose processors that offer fraud detection, chargeback management, and reporting features aligned with card network requirements.
Cloud-based solutions provide access to current tax rates and rules across jurisdictions while enabling centralized management of tax compliance activities. These platforms often include features for managing multiple currencies and languages, essential for international operations.
Compliance Is an Advantage, not a Burden
Ecommerce compliance is an investment in your business’s long-term sustainability and customer trust. While the regulatory landscape may seem daunting, businesses that prioritize compliance gain significant advantages.
- Compliant businesses avoid the devastating consequences of violations:
- fines ranging from thousands to millions of dollars
- account shutdowns that halt revenue
- placement on the MATCH list that makes processing impossible
- reputational damage that erodes customer trust
Beyond avoiding penalties, compliance builds credibility with customers, payment processors, and platforms.
The most successful ecommerce businesses embed compliance into their operations from the start. They view regulatory requirements not as obstacles but as frameworks for building trustworthy, sustainable operations. By maintaining transparent practices, securing customer data, providing clear disclosures, and staying current with evolving regulations, you position your business for growth across markets and borders.
Whether you’re launching a new ecommerce venture or scaling an established operation, make compliance a cornerstone of your strategy. Work with experienced payment processors who understand high-risk industries, invest in the right technology solutions, and build a culture where every team member understands their role in maintaining compliance.
The effort you invest in compliance today protects your ability to operate, compete, and thrive tomorrow.
Compliance Glossary
3-D Secure (3DS): A security protocol that adds an extra layer of authentication during online credit card transactions to reduce fraud.
Affiliate Marketing: A performance-based marketing strategy where partners earn commissions for driving sales or traffic.
Chargeback: A reversal of a credit card transaction initiated by the cardholder’s bank, usually due to fraud or customer dispute.
Chargeback Monitoring Program (e.g., VAMP): Programs by card networks like Visa and Mastercard to track high chargeback ratios and enforce penalties.
Data Protection Officer (DPO): A designated person responsible for overseeing data protection strategy and GDPR compliance within a company.
Digital Services Act (DSA): European regulation that governs online platforms, requiring them to combat illegal goods and enforce transparency.
GDPR (General Data Protection Regulation): EU data privacy law mandating strict consent, data handling, and transparency requirements for personal data.
KYC (Know Your Customer): Verification steps businesses take to confirm the identity of their customers, especially in regulated industries.
MATCH List: A list maintained by card networks of merchants who have had their accounts terminated for compliance or fraud reasons.
Negative Option Rule: An FTC rule governing subscription services that require clear disclosure and easy cancellation options for automatic renewals.
PCI DSS (Payment Card Industry Data Security Standard): Security standards aimed at protecting payment card data and preventing breaches.
Processor Reserve: A percentage of funds withheld by payment processors as a security buffer against chargebacks or business risk.
Refund Policy: A published document outlining conditions under which customers may return goods and receive refunds.
SCA (Strong Customer Authentication): Authentication requirements set by European PSD2 regulations to verify online payments with multiple factors.
Statement Descriptor: The text appearing on a customer’s credit card statement indicating the merchant name and transaction details.
Subscription Compliance: Rules and best practices for legally offering recurring billing services, including disclosures, consent, and cancellation.
Terms of Service (ToS): Legal agreement specifying the rules and conditions governing the use of an ecommerce website or service.
Trust Seal: A badge or icon indicating that an ecommerce site meets certain security or compliance standards, reassuring customers.
Verified by Visa (VBV): Visa’s implementation of 3-D Secure that authenticates cardholders during online purchases to reduce fraud.
Here’s an expanded glossary with additional laws, regulations, and terms relevant to ecommerce compliance. These definitions help your readers navigate the regulatory landscape confidently.
ADA (Americans with Disabilities Act): U.S. law requiring that digital platforms, including websites and apps, are accessible to people with disabilities. Sites must meet WCAG standards for proper compliance.
CCPA (California Consumer Privacy Act): A California law giving residents rights regarding personal data collected by businesses, including access, deletion, and opt-out of data sales.
CPRA (California Privacy Rights Act): An expansion of CCPA that introduces stronger enforcement, additional consumer rights, and stricter data retention rules for businesses handling California consumer data.
Consumer Protection Laws: Regulations that safeguard buyers from unfair or deceptive business practices, including transparent pricing, product disclosures, right-to-cancel, and refund policies.
DMA (Digital Markets Act): EU law designed to promote fairness and contestability in digital markets, especially targeting large “gatekeeper” platforms to avoid self-preferencing.
DMCCA (Digital Markets, Competition, and Consumers Act): New UK law granting authorities the power to issue enforcement notices and fines—up to 10% of global revenue—for consumer law breaches in ecommerce.
DPDPA (Digital Personal Data Protection Act): Indian privacy law mandating strict requirements for data protection, especially relating to children’s data and cross-border transfers.
European Accessibility Act: EU regulation requiring websites and digital services to be accessible to all users, including those with disabilities, effective June 28, 2025.
General Product Safety Regulation (GPSR): EU law demanding risk assessments and clear labeling for products sold online, with mandatory reporting and immediate removal of unsafe goods.
LGPD (Lei Geral de Proteção de Dados): Brazilian data protection law similar to GDPR, focusing on consent, data minimization, and breach notification.
PCI DSS v4.0: Latest release of the Payment Card Industry Data Security Standard, with stricter security measures including password policies and script integrity for ecommerce sites.
Platform Liability: Legal obligation for online marketplaces to ensure products sold on their sites comply with safety and regulatory standards, and for sharing product data with authorities.
Refund and Cancellation Rights: EU and UK consumers can cancel online purchases within 14 days for any reason and receive a refund; terms must be transparently disclosed at checkout.
Right to Be Forgotten: GDPR provision allowing individuals to request deletion of their personal data from a business’s systems.
Tax Compliance: Ensuring proper registration, reporting, and remittance of VAT/GST and other taxes for sales, especially in cross-border commerce.
Transparency Requirements: Mandates for clear data collection, advertising, product information, and algorithmic decision-making disclosures to consumers.
Unfair or Deceptive Practices: Prohibited actions under FTC and similar global regulations, including false advertising, undisclosed fees, deceptive designs (“dark patterns”), and misleading statements.
VAT (Value Added Tax): A consumption tax imposed in many countries (especially in the EU) on goods and services at each stage of production/distribution; ecommerce stores must register as sellers in each country where thresholds are met.
