Do you feel comfortable with your business’s payment protection plan? There are many myths surrounding e-commerce and the strength of payment protection.
If you think your business is too small to worry about hacking, you’re wrong. Keep reading to distinguish myths and fact-based solutions.
Myths and Facts About Payment Protection
Cyberattacks have increased during 2020. It’s often difficult to distinguish between what is true and what is hype. The following provides information to help you secure your business.
Myth: Small Businesses Don’t Have to Worry as Much About Fraud Prevention
Small companies often lack security experts making them prime targets. Research shows that 43% of cyberattacks impact small businesses. It's key to increase security for all payment systems including website transactions.
Myth: Accepting Cashless Payments Risks More Consumer Fraud
Some merchants feel uncomfortable with digital and card-not-present (CNP) payments. CNP means collecting credit card information without looking at the card.
False-positive CNP rejections present the biggest problem for customers and businesses. These erroneous declines cost e-commerce businesses $8.6 billion.
Actual fraud prevention totals are only about $6.5 billion. While these both represent significant numbers, fraud detection solutions need increased specificity.
Local payment methods (LMPs) and eWallets offer secure options for cashless payments. Customers download e-wallet online registered money accounts and use them for payments. E-wallets use two-step authentication and encryptions to secure personal information (PI).
LMPs allow U.S. businesses to accept payment worldwide. They provide multifactor authentication linked to the consumer’s specific bank.
Myth: eCommerce Web Apps Provide Credit Card Processing Payment Protection
Even sites that don’t collect payment details often gather other customer information. Cybercriminals use this PI on the dark web, for phishing schemes, ransomware attacks, and more.
The key is instituting e-commerce fraud protection strategies. The following provides a list of tactics for enhancing fraud protection.
Card Testing Fraud
Thieves make small, test purchases using stolen credit card numbers. This lets them see if the transaction will go through.
Cybercriminals track valid purchases and pose as the customer. They request a chargeback. They provide a different account claiming theirs is compromised.
Fraudulent chargebacks cost e-commerce $80 billion each year. Many companies now offer chargeback guarantees for sellers. Payment processors have rolled out fraud prevention solutions and chargeback insurance.
Account Takeover Fraud
Account takeover (ATO) fraud describes a cyberattack on an e-commerce user’s account. The thief can make purchases, withdraw funds, and access other user accounts.
Machine learning is increasing account takeover protection. During continuous account monitoring, the machine “learns” normal behaviors. This includes interaction with devices, typing style, and swipe and drag patterns.
When it detects suspicious behavior, it challenges the user for more authentication. If the user fails, the transaction stops.
Myth: Cart Abandonment Is Only a Nuisance
Any savvy business owner knows that cart abandonment e lost sales. In fact, on average, this accounts for 75% of e-commerce lost revenue.
How can businesses reduce cart abandonment? Here is why customers leave:
- Excessive shipping costs
- Forced to create an account
- Customers can't see the final charges before paying
- Trouble navigating the website
- Don't trust the site’s payment security
Decrease losses by creating intuitive shopping experiences. Make sure your site shows your security protocols to create trust.
Looking for an Increased Payment Protection Solution?
This article described several myths some business owners believe about payment protection. Vesta offers guaranteed payment and fraud solutions. We protect 500 million transactions every year.
We offer flexible business models so that our products fit your unique needs. Our data scientists use artificial intelligence and machine learning to protect your transactions. Request a free demo today.