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AIG’S eBUSINESS RISK SOLUTIONS INTRODUCES NEW COVERAGE ADDRESSING WEB MERCHANTS’ FINANCIAL EXPOSURE TO CREDIT CARD FRAUD
NEW YORK, October 8, 2001-AIG eBusiness Risk Solutions, a division of the American International Companies, has introduced WebMerchantGuard*, a new insurance coverage designed for web merchants to address their exposure to credit card fraud.

Unlike their brick-and-mortar counterparts, web merchants usually have to absorb financial losses through “chargebacks” that arise from the fraudulent use of credit cards. WebMerchantGuard provides reimbursement to the web merchant for the amount of the chargeback. By offering insurance protection against the risks of theft, forgery or unauthorized use of a credit or debit card in any on-line transaction, WebMerchantGuard provides essential financial relief not otherwise available to the web merchant.

“As Internet shopping increases, especially during the holiday season, credit card fraud and chargebacks will become a larger financial concern for web merchants,” said Gretchen Hayes, President, AIG eBusiness Risk Solutions. “WebMerchantGuard helps address the inherent risk of selling products and services online by offering web merchants a financial solution that allows them to avoid catastrophic or seasonal chargeback volume, reduce their reserves against such losses and improve cashflow.”

WebMerchantGuard is available to Internet-only and click and mortar merchants. Additionally, financial institutions that manage web merchants' financial accounts, independent service/sales organizations that process credit card payments, application software providers that offer fraud prevention solutions, and Internet shopping portals with preferred web merchants may make the policy available to web merchants utilizing their products or services. Coverage is also available for small businesses and associations.

For more information on AIG eBusiness Risk Solutions' WebMerchantGuard, contact your insurance broker, local American International Companies office or contact Jean McDermott-Lucey, AIG eBusiness Risk Solutions at 212-770-6752 or by e-mail jean.mcdermott@aig.com

AIG eBusiness Risk Solutions (AIGeBRS) is a global leader in identifying, evaluating and managing the evolving Internet-related risks in the B2C and B2B markets. AIGeBRS offers a comprehensive suite of insurance products and risk management services combining insurance, information services and technology that support eBusiness at its most sensitive touch points: network security, trade credit, identity, and credit card fraud.

* The above described coverage may not be available in all states, and the above description thereof is neither a complete description nor a complete list of all terms, conditions and exclusions. Note that certain terms used above are defined in the policy. Please see the policy for a complete description of its scope and limitations of coverage. Issuance of coverage is subject to underwriting. Insurance is underwritten by member companies of American International Group, Inc. Non-insurance products may be provided through independent third parties.