LONDON, June 2 /PRNewswire/ --

- Over Two Thirds (68%) of Retailers Admit Payment Fraud Remains the
      Most Daunting Element of Running an Online Business

    - 60% of Online Retailers do Not Know if They are Currently PCI DSS
      Compliant

    - Three Quarters (75%) of Respondents Intend to Invest in Their Online
      Business Throughout 2009



Whilst 75% of online retailers will invest to grow their businesses 
this year, over two thirds still feel threatened by payment fraud, a survey 
from Sage Pay has shown. This, together with an increasing trend in consumer
fraud concerns, will have a defining impact on the future of online retail 
in the UK. The findings make grim reading for businesses that intend to cash 
in on the high street exodus as they express an increasing desire to invest
and develop their online retail presence.

According to the research, an overwhelming majority of respondents (68%)
admitted that online payment fraud remains one of the most daunting elements
of running an online business. Yet despite these fears, only a small
proportion of the 1,000 respondents could demonstrate a clear understanding
of the financial risks and implications associated with conducting business
online. Indeed, 60% of online retailers do not know whether they are Payment
Card Industry Data Security Standard (PCI DSS) compliant.

"Payment fraud poses a significant threat to online retailers in the UK,"
said Simon Black, Managing Director, Sage Pay.

"Online retailers have become adept at driving traffic to their websites
but there is still a significant knowledge gap when it comes to understanding
and implementing payment security. However, where retailers adopt the
recommendations of PCI DSS, fraud screening and schemes such as Verified by
Visa and MasterCard SecureCode, shopping online poses no more risk than
payments made on the high street.

"Although (PCI DSS) compliance has existed since December 2004, our 
latest research suggests that just over one third (39%) of online retailers 
actually understand the definition of PCI DSS compliance, while 65% of 
respondents do not believe that they are personally responsible for covering
the implications of payments fraud committed on their site."

Black added, "PCI DSS compliance applies to all organisations that hold,
process, or pass on cardholder information and it has significantly reduced
the impact of credit card payment fraud within the UK."

In 2008, the value of international internet payment fraud was valued at
almost US$7bn(1). With an overwhelming majority (75%) of survey respondents
expressing an intention to invest in their business throughout 2009, it is
imperative therefore, that they recognise the scale of this threat and take
practical steps to combat it and avoid inadvertently restricting future
growth.

"Over the past six months we've registered an increase in online
transactions year on year, despite the economic downturn, so there is clearly
an increasing appetite for UK consumers shopping online. However, in order to
persuade consumers to broaden their shopping habits it's essential that
retailers demonstrate the importance of online payment protection by taking a
series of straightforward steps to protect themselves and their customers,"
said Black.

Sage Pay provides payment services, that include fraud prevention and PCI
DSS compliance to businesses of all sizes, from start-ups to large,
well-established e-retailers that include easyJet Plus!, National Express,
LOVEFiLM and Swiftcover. http://www.sagepay.com

Notes to Editor:

About the research

The Sage Pay survey was conducted in April 2009 and included the views of
over 1,000 SMEs.

About Sage Pay

Sage Pay is the union of Protx, the fastest growing payment service
provider (PSP) and Sage, one of the UK's most trusted business brands. We
offer our 22,000+ customers a secure payment service for the millions of
transactions that we undertake on their behalf each year.

The philosophy that has driven us since our launch in 2001 is still at
the heart of our business - to give our customers more than they pay for, and
to make it really easy for them to do business. We make the process of
accepting payments simple, fast and safe. Whether your need for online
payment is simple, or completely tailored, we can help to make accepting
payments online, over the phone or via mail order more profitable.
http://www.sagepay.com

Media contact:
    Charlotte Speller
    Email: charlotte.speller@sagepay.com
    Tel: +44(0)7595-272-308

    (1) Symantec, "Recession proof economy report", November 2008