How Merchants Can Reduce Credit Card Fraud
If you operate a retail or eCommerce business, accepting all major credit cards and electronic checks is a required method of customer payment. However, when you decide to accept electronic payments, business owners must also consider the potential cost of fraud.
Studies have shown both traditional and online merchants have lost billions in fraudulent transactions. Today, technology provides proven methods for identifying and preventing fraudulent transactions as there are so many best fraud detection firms.
Fraud can come in many forms. Needless to say, fraud is bad for business. If you process a fraudulent customer order by the time you find out the credit card was stolen you have already shipped the product. Fraudulent orders usually result in a customer credit card chargeback to your business.
Unfortunately, by that time, you have delivered and lost your product, you have lost the income from the sale and to top it all off; you will receive a chargeback fee from your credit card processor. I'm sure we can agree there is a strong need to identify and stop a fraudulent order before you deliver your product.
Fortunately for the merchant, there are many steps and processes that can be implemented to reduce and eliminate credit card fraud.
Fraud prevention is a necessary activity for traditional and online merchants