Saturday, June 15th, 2019
The cost of fraud for e-commerce merchants has never been higher than it’s today. What are you doing to protect your business from fraudsters? Do you have a reliable payment processor to work with? No? Who can help you find one? No worries! Just follow the lines below and you’ll know.
The Cost of E-Commerce Fraud for Merchants
Merchants lost $16 billion because of e-commerce fraud in the US alone in 2016, as Javelin Strategy & Research reported. Did you know global card-not-present (CNP) fraud losses are anticipated to reach $71 billion by 2022?
The rise of CNP fraud is partly caused by the sophisticated, ever-evolving technology that criminals use to attack online sellers. However, the true cost of fraud isn’t limited to only the revenue merchants lose.
The other costs include losses associated with shipping and insurance for fraudulent purchases, chargeback fees from payment-processing companies, in-house manual reviews for orders, 3-party fraud-detection and fraud-prevention solutions, as well as hard-to-calculate short- and long-term losses caused by extremely strict, one-size-fits-all fraud-protection services.
By the way, fraud is especially high for restaurants, electronics, and digital-goods sellers. The thing is that fraudsters use more creative and more advanced methods to attack online and mobile commerce. Account takeovers and stolen payment information “help” fraudsters intercept and resell merchandise: criminals use restaurants to test fraudulent payment credentials.
Best Protection for E-Commerce Merchants
The annual losses that online merchants have because of chargeback fraud and post-sale chargeback-driven expenses make up $40 billion. According to Juniper Research, Mexico, the Netherlands, France, Russia, Spain, and, finally, the US have the highest rates of fraud-related chargebacks.
E-commerce scams accounted for about £400 million last year, thus turning into a significant problem for Europe. The total CNP fraud losses made up 24% from 2017 to 2018, as UK Finance reported. These losses were associated with more than 2 million recorded cases, thus representing 47% YoY (year-over-year) growth.
With all this in mind, merchants should do their best to find a true payment expert to work with so to avoid e-commerce fraud losses in the best possible way. Finding one can’t be an issue if you turn to a reputable payment-processor comparison company like Best Payment Providers in the UK.
Best Payment Providers is dedicated to helping you find the merchant-services provider that’s the best fit for your company. So, with Best Payment Providers, e-commerce merchants can be sure to enjoy the highest level of fraud protection and prevention, as well as the cheapest rates in the industry.
Importantly, Best Payment Providers is focused on terms, complaints, and integration, and provides the most honest snapshot of companies at the time of writing. What’s more, Best Payment Providers never fails to check each merchant-services provider’s integration process so to make sure you enjoy a smooth transition and onboarding process.
To sum up, e-commerce fraud isn’t going to slow down anytime soon. It’s vitally important for you to use the most advanced and reliable fraud-prevention techniques so to avoid bigger losses caused by fraud.