Fraud detection should be top of mind for every business, but particularly for those selling online. Whether it's friendly fraud where customers don't recognize legitimate transactions made and request a chargeback, card testing where thieves try to determine if stolen credit card data can be used to purchase goods, or any number of other costly tactics, shielding your business form fraudulent activity is more important than ever. Start protecting your eCommerce business today with following the easy-to-implement fraud prevention tools and tips.
Use Extra Caution with Online Transactions
Customers love doing business online because its hard to beat the convenience. But for merchants, online sales present certain risks. When buyers pay online or over the phone, the physical credit card is not present for the transaction, hence the name card-not-present (CNP) transactions. CNP fraud is highly prevalent, costing merchants billions each year.
A smart way to prevent CNP fraud on your website is to require customers to input their card verification value (cvv) number for all online, over-the-phone, and mail order purchases. The CVV is the 3-digit or 4-digit number usually on the back of the credit card. Additionally, request that customers enter the card's billing zip code when making their purchases to lesen the occurence of fraud.
Avoiding Friendly Fraud
Friendly fraud, also known as chargeback fraud, occurs when your customers don't recognize your businesses' name on their credit card statements and initiate a chargeback. Chargebacks are a common and expensive problem for merchants of every type, so be sure your businesses' name is clearly represented and recognizable on statements. For example, if your company's official name differents from your online store's name, contact your merchant services provider to confirm it's your store name that actually appears on your customer's statements.
Communicate with Customers to Deter Fraud
When corresponding with customers about their orders, include your company's name and logo, as well as listing the item(s) purchased, the quantity and price to remind them what they purchased and the total paid, which reduces the chance of them forgetting a purchase and initiating a chargeback. The itemized order details are particularly important to include on:
Employ a CAPTCHA on Your Website
CAPTCHA stands for Completely Automated Public Turing test to tell Customers and Humans Apart. The name may sound strange, but it's a simple challenge test - such as a remedial math problem or typing in an obscure word - used to determine if a customer on your website is a human as opposed to a scamming robot. Adding a CAPTCHA test to your website or online store is simple and can often be done with a plugin. While the downside is that they require your customers to comlete an extra step before their order is submitted, CAPTCHA's significantly increase security and they are so commonplace, customers have come to expect them when buying or completing forms online.
Fraud Detection Tips
Be on the lookout for suspicious online sales, which may include:
Train Staff to Prevent Fraud
Teach your employees to remain vigilant against fraud and employ best practices when it comes to their work habits. Besides monitoring orders for unusual or suspicious activity, tell them not to open attachments from unknown or unverified sources and not to log into company networks using a public WiFi connection since these actions open the door to malware infections. Additionally, offer frequent reminders on how to prevent fraude to keep the policies top of mind.
Take Advantage of Easy-to-Use Fraud Prevention Tools
eCommerce businesses taking advantage of solutions like Authorize.net and it's Advanced Fraud Detection Suite (AFDS) are way ahead when it comes to outsmarting fraudsters. The suite has a wealth of profit-protecting benefits and fraud detection tools designed to help identify suspicious activity and filter out the good transactions from the problematic, including:
To learn more about how these solutions can help your online business operate in a more secure way, contact Electronic Payments Lake Superior at (715) 638-0481.
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Electronic Payments Lake Superior
10767 Nyman Ave
Hayward Wisconsin 54843