Purchases made from online merchants now make upthe majority of sales. As time goes on, more and more people will begin to make this their primary way of shopping.
But, it's essential that you take steps in order to prevent fraudulent transactions from occurring on your platform.
Not sure where to begin? Let's explore the steps that you can take.
Place a Limit on Declined Transactions
Occasionally, hackers will use malicious software to acquire financial info from unsuspecting victims. They'll then use software to automate as many online purchases as possible before the card owner cancels it.
If these individuals are allowed an indefinite number of declined purchases, there's nothing stopping them from tweaking information until the purchase is able to go through.
So, it's in your best interest to limit the number of declined transactions for all customers. It's unlikely that a normal buyer will have their card declined more than once or twice due to an honest mistake, so a total of three attempts is often a good choice.
Monitor Your Transactions
Not everyone's credit card billing address will be the address they choose to ship to. But, this doesn't mean the purchase is fraudulent.
If a buyer makes a large purchase to a location that isn't located anywhere near their billing address, you may need to take a closer look. For example, you may find that the billing and shipping information is inconsistent (such as using different names for each).
Or, you may discover that their listed email clearly indicates that it's a fake account. There's a strong contrast between email@example.com and firstname.lastname@example.org.
Although this can be a time-consuming process to conduct manually, enlisting thehelp of a professionalcan save you a significant amount of time.
Don't Allow Purchases From Countries You Don't Ship To
Oftentimes, hackers makefraudulent purchases from other countriesdue to having a much lower chance of being apprehended by law enforcement. They'll make large purchases with compromised credit card information from foreign businesses and have it shipped to their country of residence.
While it's possible to hold these types of transactions for review before they're completed, there's a simpler option—don't allow purchases from countries that you don't ship to.
For instance, if you only offer to ship to the United States and Canada, make these the only options that users have to choose from. This will allow you to eliminate a large number of fraudulent purchases that would have otherwise caused complications for you in the future.
Implementing Fraud Prevention Can Seem Difficult
But it doesn't have to be.
With the above information about fraud prevention in mind, you'll be well on your way toward keeping your customers (and your brand) as safe as possible.
Want to learn more about how we can help? Feel free to get in touch with us today tosee what we can do.