Selling online has transformed trade, allowing innumerable enterprises around the world to grow and thrive. E-commerce, on the other hand, opens the door to fraud. Unfortunately, online fraud and identity theft occur almost as regularly due to cunning crooks and poor consumer internet buying habits. Online transactions are always risky, but customers can take several steps to improve their online transaction security.
It’s crucial to comprehend the dangers of accepting online payments and the safeguards that can keep your company safe. Direct monetary losses, penalties, and fees, increased operational costs, and reputational concerns to your company are among the risks and costs. Because of these dangers, security should always be a top consideration while selling online, particularly when it comes to financial technology and personal information.
Transactional theft can lead to losses
Consider the following costs of e-commerce theft if you’re still uncertain about the need for online transaction security:
According to LexisNexis, fraud cost e-commerce organizations 2.38 percent of their sales in 2018, up 6% from 2017. According to their research, e-commerce merchants’ “real costs of fraud” are $2.46 for every $1 payment fraud.
According to Juniper Research, in the five years from 2018 and 2023, merchants might lose $130 billion due to card-not-present (CNP) e-commerce theft.
Retailers must be more watchful than ever before in terms of security and management. Take into account the following popular online transaction security precautions when creating an online store for your company.
1. Allow the address verification system (AVS)
An email validation system is a vital tool for reducing fraud (AVS). The billing address gets checked against the cardholder’s information from the financial institution using this system.
Because the criminal typically does not have access to the legitimate cardholder’s mailing address, AVS helps to prevent fraud. AVS systems are frequently used in combination with CVV2 verification, a three- or four-digit code on the back of the consumer’s physical card. At the checkout, requiring both CVV2 and AVS can assist safeguard against fraud cases.
2. Take the time to learn about any unusual purchases
Fraudsters are highly skilled crooks who wreak serious harm to both businesses and people. But con artists aren’t perfect—everyone leaves a trail. These traces can build up to unusual behavior patterns, raising the suspicion of fraud.
Multiple orders from the same IP address using different credit cards can be a red flag. This trend indicates that a single fraudster utilizes many credit cards, either obtained straight from data theft or bought on the dark web. Substantial orders, especially when the buyer demands next-day delivery, maybe a warning flag for fraud.
Taking the time to learn about the different types of questionable behavior you can see when selling online will help you make better judgments. Leading e-commerce solution providers and transaction partners can assist you in finding the ideal balance of security and simplicity for your business.
3. Comply with industry requirements such as PCI DSS
The main objective of data security prompted the creation of Payments Card Industry Data Security Standards (PCI DSS). The PCI DSS is a set of best practices and principles that apply to every institution receiving, transmitting or keeping sensitive card data.
4. Collaborate with a payment system that is familiar with online transactions
The first stage in processing payments online quickly and reliably is to choose the correct payment processor. You can rest easy knowing that your data is safe when you engage with a trustworthy payment processor that places a high priority on security.
Keeping your online payment methods and e-commerce store secure is a continuous process. Consultation with a payments specialist is an excellent place to start. A reliable and knowledgeable payments partner will take the time to learn about your company and tailor online transaction security procedures to match your needs.
If you believe your bank card or private details have been misused online, contact the leading credit agencies right once to have a fraud alert placed on your credit report. Notify the credit card company of the fraudulent usage as soon as possible. The timing with which you report charges typically determines your culpability for charges.
Call your credit card or bank provider right away if you have any concerns about your internet banking or credit card activities. To safeguard your credit profile and savings balance, start taking monetary operations and online security seriously.