Providing a safe way for customers to make their purchases online is an essential part of e-Commerce. Neglecting this aspect can result in a host of problems including lawsuits, fines, and even worse, a tarnished reputation. This can certainly cripple a business, lose customers, and eventually close the business for good.
The Numbers Don’t Lie
According to Digital Commerce 360 and Shift Processing, there were some disturbing stats and trends that are plaguing the e-Commerce industry. For example, in 2018, it was reported that more than $24 billion was lost internationally due to “fraudulent credit card transactions.” Also in 2018, credit card fraud alone increased by 18.4% and this amount continues to increase. And finally, it is 81% more probable for card-not-present fraud to occur as opposed to point-of-sale fraud.
Just based on the aforementioned statistics, it is clear that the e-Commerce landscape continues to be a preferred target for fraudsters as vulnerabilities still continue to exist. Businesses need to up their game by maximizing their payment security and fight to mitigate any chances of fraud.
If fraud is overlooked by your company, customers will no longer frequent your online business and this can have a devastating effect on your bottom line.
Take Action By Combating Fraud With These Tactics
Luckily, there is no shortage of solutions available for merchants to stop fraud in its tracks. The basic steps of action need to involve complying with the industry’s standards, enabling AVS, and taking time to analyze all fraud data. This will ensure a better, safer online shopping experience. Read on to find out more tactics.
- Seek a secure payment service provider: The best solution for both your customers and your business involves partnering up with a payment service provider that specializes in risk and the management of fraud. Some of the services you should be seeking include: “real-time monitoring of fraud”, data analysis, and chargeback management.
- Choose a safe payment gateway: The primary function of payment gateways is to process payments securely. The encryption of card information is a valuable feature that ensures that the data is safely transferred between the consumer, the merchant, and the issuing and acquiring banks. It is a crucial piece of the puzzle and it alleviates you from worry, knowing that your customers’ information is safe.
- Stay in compliance with PCI DSS: PCI DSS (Payment Card Industry Data Security Standard) is a system of requirements for businesses that process, transmit, and store card data. Failure to comply will bring serious consequences. In order to stay compliant, businesses should consider testing their systems regularly, the encryption of all cardholder information, and ensuring that all anti-viral software is current.
- Manage chargebacks: Reducing chargebacks should take precedence because not doing so will mean loss of revenue and an increase in operating costs. By implementing “advanced fraud rules” would give merchants a better feel by examining certain patterns of behavior.
- Implement Address Verification System (AVS): Address Verification Systems (AVS) gives merchants an extra level of security. It confirms that the cardholder has provided the correct details. It ensures that the address given corresponds with the “recorded” billing address. If there is any discrepancy in the information, it will be flagged for fraud.
There is no doubt that the way for businesses to bring in the revenue is to accept credit and debit cards online. However, the merchant must take every precaution necessary to ensure the customer’s information is safe and secure. This will foster trust and repeat business for years to come.