In this modern era, every person wants to be the part of internet and technology to make his/her life easy. But, have you ever imagined that this advanced technology is also paving the way for frauds and other malicious attempts? There are some people who attempt wrong activities to steal a sum of amount or even confidential information. Whether it is an e-commerce venture or hospitality business, it is important to hire a third party company that help you in authenticating your customer’s data.
Frauds come in different forms to wreak havoc your business growth and reputation. Through this guest blog post, you will understand the importance of acquiring data verification services.
Credit card frauds: a concern for e-commerce ventures
Consider the example of e-commerce business where a large number of customers buy products through online transactions. If you operate an online fashion store, then accepting all major credit cards and different payment modes is important. However, when you decide to accept all electronic modes of payment, you should also consider the potential risks involved with frauds.
Various researches and studies have showcased that both traditional and online merchants have become the victim of frauds. Needless to say that these fraudulent attacks and crimes are very nefarious for your online business. In fact, suspicious activities like unauthorized transactions, credentials theft, and customer data breach can bring down your business image. Preventing such fraudulent attacks have become the order of day.
If you process an order of a fraud customer and certainly you find out that the credit card was stolen for which you have already dispatched the product. These orders from stolen customer credit card charge back to your business. Unfortunately, the package you shipped out for delivery is lost and the income from the sale is also lost. This is not the end of this case, you will further receive a chargeback fee from your credit card processor. Here comes data party verification services into the picture. This will help your business in preventing fraudulent order before you deliver a product to that address.
Have a close look to the below listed steps and processes that can be implemented by the online merchants to reduce credit card frauds.
Address verification services (AVS): In data verification, it is an important process used to decrease the chances of accepting a stolen or lost credit card. At the time of processing a transaction, you make sure that you capture the billing address and zip code of the card holder. The sale system then automatically verify AVS with the bank which issued the card. If address is not matched, the transaction would be cancelled. As per various stats, it has found that around 80% of fake transactions in the USA are due to AVS mismatch. By implementing this verification, you can reduce credit card frauds.
Card verification: This process is similar to the above listed process. In card verification, CVV—a three-digit code on the back of a credit card—is verified by the bank which has issued it prior to processing the transaction regarding any purchase. If the code mismatches during the transaction, then transaction would be cancelled. It is a very effective process to control online fraud activities and thefts.
Advanced fraud protection measure: This service help companies and online merchants to block all the financial transactions originated from a specific IP addresses or region. Sometimes, cyber criminals make use of IP spoofing (a technique in which criminal pretend as a trusted host to conceal his identity and hijack network or browsers) and persuade wrong attempts. With the help of advanced protection measure, companies can prevent all the business transactions from specific IP addresses or country which are considered as frauds.
Examine international orders or transactions: Oftentimes, companies and online merchants are required to make international transactions. Verification experts suggest that they should obtain International merchant account as it will help them to prevent from online frauds and breaches. In addition, International merchant account provides merchants with the benefits of setting the local currency.
In short, it is always important for any business to incorporate fraud prevention strategies like data verification services to prevent from nefarious attacks.