Preventing eCommerce Fraud: The Role of Comprehensive Transaction Visibility
E-Commerce frauds are increasing day by day. According to recent data, small and mid-size business owners often face friendly E-Commerce frauds that differentiate between 1.5% to 2% gross profit. These commerce businesses depend on these gross profits to further build the business or more out of business, making fraud a serious concern. Aside from data theft, friendly frauds are one of the major concerns that are hard to detect without transaction visibility, draining businesses. In this article, here are some ways that one can adopt to reduce E-Commerce fraud. Keep reading to learn more about E-Commerce fraud prevention ahead.
The data drive approach is one of the most common ways to prevent E-Commerce fraud through data visibility between the customer and the business. As E-Commerce sales are rising, the data is collected in huge abundance. Data verification by businesses following a certain pattern can definitely reduce E-Commerce fraud. The transactional data and the follow-up pattern can also help one to reduce friendly fraud by detecting a pattern. This method has various pros and cons, and it will take time to attack new patterns being launched in the market. Also, in the long run, it is very helpful that it frequently adapts itself to new kinds of patterns in the market.
Identifying purchasing patterns
Identifying purchasing patterns from machine learning algorithms can be very helpful for E-Commerce businesses to save themselves from fraud. Similar to the data transaction visibility, it is required to also look out for the patterns where a genuine customer returns every month and with the same products or the Purchase history. This particular pattern shows that the credit card or the debit card used for the transaction is from a genuine customer and is likely not stolen. Sudden purchases and irregular patterns can show that the credit card is stolen or something is wrong with the transaction. This tracking also helps E-Commerce businesses to reduce the return and refund process with errors.
Prioritize customer satisfaction
One of the most important elements in e-commerce is that one should always know about prioritizing customer satisfaction to retain good clients to avoid friendly fraud. According to data, frauds often happen with small businesses that are not active in following the transaction journey and easily address refunds over fake without complying with the standard method. An E-Commerce business should always vary about their customers as the customers always vary about E-commerce websites and shopping online.
Following the payment journey carefully
One should always follow the payment journey carefully for each client and customer if the order is based on custom installment procedures. E-Commerce businesses that provide services in a step-by-step process providing installment payment options for the clients should follow a payment journey to avoid any kind of friendly fraud or ethical bargaining.
Preventing E-Commerce broad has always been a hot topic for small and medium-sized businesses to increase their growth profit, but it has never been easier. We hope that you learn from this piece of information.