Most online merchants are struggling with chargebacks and fraudulent payment problems. Cybersecurity experts forecast that this trend could worsen with the advancement of technology. However, the roll-out of the EMV technology has made it slightly tricky for crooks to hack credit cards. As a result, cyberbullies are expected to turn their attention elsewhere. Luckily, there are many automated and easy ecommerce fraud prevention measures.
Fraud Detection Software
From learning the software to fraud scoring and, there are plenty of excellent fraud detection systems out there. Some online retailers utilize built-in fraud detection systems along with a third-party software application to bolster their security. When these software programs are used in tandem with internal security practices, they can help automate tasks and reduce fraud risk.
Online merchants are often liable for any fees and chargebacks that result from a fraudulent order. eCommerce stores can use gateway settings to inspect each order before shipping goods and capturing payment. You can expect this functionality from almost all payment gateway vendors. So, be sure to find a service that meets the needs of your eCommerce.
Card Verification Codes
Online merchants should equip their website with a feature that requests for a card verification code before processing payment. It is usually a 3-digit code, but it can vary depending on the credit card issuer. Visa refers to these three digits as CVV2, and they are generally printed at the back of the card.
Acceptable Payment Methods
As an online merchant, you’re probably aware that payment methods carry different risks. Payment methods, including AMEX, often tend to favor the holder of the card in case of a dispute. However, others such as Paypal are relatively friendly to merchants and use shopping verification and Ethoca chargeback techniques to protect sellers and detect fraudulent activities before they occur. Online merchants exposed to fraud risk should use a payment method that best suits their interests.
Most online enterprises fall victim to cyber fraud at some point in their lifecycle. Some end up losing millions of dollars as a result of online fraud. Besides hacking and phishing, your business could be held responsible for financial loss if it accepts fraudulent payment. The chargeback process and dealing with fraudulent transactions and reputation damage are all unpleasant. Luckily, there are a few steps that online merchants can take to protect their business and customers from potential attacks and reduce their risk.