As far as we have come with the World Wide Web and the e-commerce features that come with it, there are still some risks that can get in the way of doing business as usual. The internet is a large and inclusive space with its own vulnerabilities, especially when it comes to money and business. While there are many great online payment processors and resources like Shopify and WooCommerce to help businesses transact online, there are always risks. Realizing these risks and how to correct them is the best line of defense for online sales.
Here are the most common risks facing online businesses today. If you are starting an ecommerce business or adding some form of online payment to your site, make sure you tire of these risks and check your technology to protect against them.
1) Identify the flight
Imagine this: you receive an order for your online business, then you fill it. It’s already in the mail when you get a notification that there has been a chargeback for fraud, which means the customer’s bank canceled the payment because the real customer was the victim of a fraudulent charge. ‘identity. In this case, someone stole their name and credit card information and bought something from you with it.
Of course, it is now too late, because you have already shipped your product. The victim of the fraud was reimbursed by their bank, but you did not and you lost the cost of goods sold. Identity theft is becoming more of a problem in the wake of the pandemic and the global financial turmoil. If your payment processor doesn’t have fraud defenses, you’re vulnerable.
2) Friendly fraud
Another type of fraud is called “friendly fraud” because it is not as hostile as full identity theft. This is when a customer honestly uses their own card information, but initiates a chargeback with a bank after you have already completed the service or sent the product. For example, let’s say you are an astrological chart reader taking a reading with a customer who has booked and paid with a credit card. Then after the session you get a notification that their bank or credit card company declined the amount.
They can do this if they tell their bank that their card information has been stolen, or tell them “they didn’t order what’s on my statement.” This once again puts the livelihoods of your business at risk, as you have already completed the service and the costs are rightfully yours.
3) Data breaches
Imagine that you have invested in a payment processor and you are sure it will do the job. Customers can enter their credit card information and everything will be transferred seamlessly to your business bank account. Except the processor or the platform is not as secure as it has been advertised. You receive a notification that there has been a company-wide data breach and that all of your customers’ credit card information is at risk. This happens more often than you might think! You certainly don’t want to be the reason a customer has to cancel their cards and get new ones to avoid identity theft, even if it wasn’t your fault or intention.
4) Complications with international payments
Since many countries have different payment methods and policies regarding online transactions, it can be difficult to expand your customer base or customer base beyond a few major countries. Or, you are using a payment processor that allows currency exchange, but it comes at costly risk to you or the customer, taking a large chunk of the fees to complete the transaction.
How to avoid these risks
With such serious risks, having a payment platform that you can trust is essential. Many technologies are entering the scene to save the situation, like PayCertify. The PayCertify platform prevents fraud and friendly fraud in several ways. On the one hand, it uses a mix of partner and proprietary technologies to detect key indicators of fraud, based on machine learning and artificial intelligence. If he suspects fraud, he will immediately block the transaction.
PayCertify also transfers responsibility for a chargeback to the customer’s bank. So, that customer who benefited from your service, then attempted a chargeback through their credit card company? Not your problem. PayCertify guarantees that the company issuing the credit card would bear the financial fault.
It is also a fully integrated global platform as the world’s first connected fintech marketplace. This makes it easier than ever to do business around the world without running into hassles, exclusions, or exorbitant fees, for you or your customers. Fortunately, the more global e-commerce grows, the more technology takes on the challenge of making online transactions as transparent and easy as possible for everyone involved. And, on the risk side, these defensive technologies also provide security!
Be sure to research vulnerabilities in your processing system and be diligent about any red flags.