eCommerce frauds are incredibly increasing every year, underlying the increasing threat to merchants and customers. It has become one of the biggest challenges of every merchant as well as consumers today. Online credit cards is one of the major sources of frauds today. Stolen credit cards information are available all over the web, and it can become a real big hassle just to check in detail every transaction your website.
In the U.S., the first steps which was taken to fight against this trend was the mandatory i.e. EMV rollout, and the consumers were receiving new “chip” credit cards which needed a pin to complete their purchase. With the implementation of this new “chip-and-pin” cards, there have been a great relieved in the credit card fraud. Europe has been relieved by the reduction of 80% frauds, 49% in Canada, 56% in the UK, and 38% Australia.
The rise of modern Magento e-commerce development has also helped to reduce the deceptions in online shopping. It has several critical extensions which account with your e-Commerce store so that customers can quickly and easily use cards for payment.
How to fight against Fraud?
Look for Good Customers
Merchants and traders are often pissed off between the fraud prevention plannings and the wish to provide a hassle-free buying interface experience for their customers. So maintaining a balance between the two is critical. Also, about 0.9% of the transactions are fraudulent and time-consuming to find. So, instead of picking and finding out from every transaction, one can begin with identifying good customers, mapping their spending patterns, order history and cross-referencing with their information.
Dropping good customers from the fraud search will ensure not to trap in the fraud checks. Thus, offering better customer experience.
Usage of Fraud Protection Tools
Merchants may engage in some manual fraud checks. There are online software tools that help in identifying both healthy transactions and fraudulent transactions in mere seconds. The credit and debit card fraud detection solutions look for fraud in two main ways:
1. Recognize stolen or suspected Cards
The fraud prevention software can quickly review more than four billion transactions globally and can check whether the card entered is faulty. It intimates in advance whether the transactions as “risky” or not. Thus, restricting it from being completed without further examination.
2. IP Piercing and Fingerprinting of the device
Nowadays, the card can be identified when used either excessively in multiple devices or used in strange places.
With the use of fraud prevention software a person can keep hold of fraudulent transactions that saves not only a lot of time, money and frustration but also builds a seamless experience for good customers.
Tokenization is a new buzz word of the e-commerce industry. Many security problems have the same root cause and attackers get access to raw credit card information from the owners or retailers. Tokenization eliminates a merchant’s need to store customers’ payment information directly. After storing it on a payment, providers secure you never have to transmit sensitive information through your systems.
A token is worthless to a hacker but priceless to the merchants and consumers. It eliminates the need to save credit card information, thus, reducing the risk for merchants on servers. It has become the popular way for businesses to reinforce the security of credit card and e-commerce transactions and reducing the cost and complexities at the same time, to match with industry standards.
We have seen multiple frauds in online shopping, and we have to take care to create a tool that brings you the protection and peace in mind. Anything suspicious or sounds fishy should be checked over and over again. It is better to make your customers happy than charging back.