That’s how much businesses lost to merchant fraud last year. Experts forecast the figure to rise to $42.3 billion by 2026. It is a huge concern in e-commerce. Organizations in other industries, particularly SMBs, are just as vulnerable. A Quickbooks study suggests small businesses lose up to $120,000 a year from fraud alone. The biggest culprit is credit card fraud as more shoppers today opt to pay online, leaving their sensitive details exposed to attackers. Chargebacks are still a problem since customers win most cases while retailers can only trust their payment processors to properly verify transactions.
It’s time for your company to start being proactive towards fraud and avoid the damage to revenue and reputation that comes with it.
1. Implement stringent rules during checkout
A common technique is to apply merchant rules to your checkout. For example, flagging transactions from locations prone to fraud or orders that exceed your average sale by a fair margin.
2. Use multiple layers of authorization
Always use a combination of authorization features to bolster your payment page so you have multiple layers of security.
3. Employ effective verification systems
Being able to verify transactions allows you to quickly stop fraudulent transactions and at the same time reduce the negative impact to revenue and reputation caused by false negatives.
4. Use manual checks sparingly
Manual checks are fine if you only have to do them a couple of times a year. Anything more is an inefficient use of your business' time.
5. Use the right technology
Fraudsters today are extremely adept and persistent at exploiting weaknesses in outdated technology. One vulnerability is all it takes for attackers to cause problems, costing you money and eroding customer trust.
Investing in a secure, up-to-date payment solution is a small price to pay for the assurance you get in providing your customers with a better shopping experience, while protecting you from merchant fraud. Vesta protects you from merchant fraud without upsetting your customers thanks to our real-time risk analysis features. Our transaction decision platform also guarantees payments for all accepted transactions while ensuring you aren’t burdened with chargebacks.