Discover how to reduce ecommerce fraud and preventing online ecommerce fraud on your online store using these 6 easy steps to reduce ecommerce fraud.
Ecommerce fraud is more prevalent than ever as online sales continue to set historic numbers. And, dealing with fraud is costly to merchants — it has the potential to cost you more than 7.5% of your current revenue!
Unfortunately, dealing with evolving fraud tactics is frustrating and time-consuming. And, protecting yourself against potential risks can backfire. Sometimes merchants end up declining real orders and lose customers as a result.
Nonetheless, any online seller needs the right processes and technology in place to safeguard their data. Otherwise, fraud can quickly drain your profits and ruin your brand reputation.
Follow these 7 easy steps to protect your online store today, keeping your bottom line healthy and your customers happy.
How does Ecommerce Fraud Happen?
Here’s common tactics by online attackers and scammers:
* Hijack customer’s account and make unauthorized purchases.
* Use stolen credit card information to make fraudulent purchases.
* Abuse return policies.
* Make fraudulent chargeback claims like never receiving an item.
* Some chargebacks are friendly and unintentional.
Once a fraudulent purchase happens, the buyer can open a dispute or request a chargeback on their credit or debit card. As the ecommerce seller, you’re on the hook to pay back the customer and their bank can impose a chargeback fee on you, which can range from $20 to $100 per chargeback. This doesn’t even include the lost money on the transaction fee, loss of inventory, time spent preparing the order, and more.
You can see that the best prevention of fraud and chargebacks is to stop them from happening at all.
6 Easy Steps to Reduce Ecommerce Fraud
Attackers are constantly evolving their methods, so it’s important for merchants to stay on top of best practices to prevent all of it.
1) Choose the Best Ecommerce Software (and Keep It Up to Date)