Since the COVID-19 lockdowns began, shopping habits have changed dramatically. Consumers are turning to online shops to purchase everyday items like groceries, medications and other basic supplies that people would normally purchase at their local, physical store. The uncertainty around the situation has also led to panic buying and larger volume purchases than previously seen before the pandemic.
This has presented merchants with more than one challenge. They have had to shift to remote work environments to ensure the safety and health of their teams. They have had to deal with delays in supplies and materials, adjust their payment processing options and provide new services like delivery and curbside pickup. And they have also had to deal with more fraud.
Fraud? Or Legitimate Online Purchases?
As the frequency and volume of online shopping has drastically increased, it has become difficult for merchants to distinguish between their good and loyal customers and the attempts of fraudsters. So, how can merchants tell the difference as these out-of-character buying behaviors become a new “quarantine norm”?
While there are still many things that point to fraud even during the pandemic chaos (identity attribute mismatches, burner phones, throwaway emails, etc.), merchants are having to be even more cautious and watchful of other key indicators. Here are a few best practices merchants should try to mitigate fraud online purchases and ensure a seamless customer experience:
- Evaluate customer contact details, such as name, phone, email, etc. Using data from multiple sources is the best way to find unique markers and ensure there is an actual human behind a digital identity.
- Always pay attention to and analyze new patterns as they emerge. This will shed some light on why customers come to your platform, resulting in fewer chargebacks and an improved customer experience.
- Work with a payment processor that can help you mitigate risk. A reputable provider like EMB will provide you with the tools, resources and support you need to prevent and manage chargebacks.
Prevent and Manage Fraud and Chargebacks with EMB
EMerchantbroker.com has created a system that helps merchants break the stressful chargeback cycle and focus on running their business. EMB has partnered with Verifi and their new Cardholder Dispute Resolution Network (CDRN), as well as Ethoca’s alert system to give merchants direct control over resolving credit transaction disputes. By offering merchants both chargeback resolution networks, you can achieve the highest rate of chargeback resolution.