When legitimate e-commerce prospers everyday, there is still the growing threat of illegitimate business. Unfortunately, there is no way we can stop these people from attaining and using others information. However, we can prevent our vendors from associating with illegitimate buyers. A business that sells tangible goods will experience less fraud than a business that sells intangible goods. It is quite easy to generate great loss by sending a service to a free and untraceable email address opposed to sending a service to a physical address. Fraud will occur in every type of business, some more than others. We find that the most sought after services that accumulate the most losses are hosting, e-books, and templates.
This may be discouraging to suppliers who provide these types of services but it shouldn’t be. It is quite safe to run a business providing said services as long as you pay attention to detail. Making sense of an order is one of the most crucial factors in determining an orders authenticity. We implore all of our vendors to be proactive in their fraud review. This educates the vendor and prepares them for what business the future brings.
As e-commerce sales continue to increase so does the amount of fraud. Just as a thief is more likely to break into a home without a security system, so too a fraudster is most likely to fraud websites with the least amount of security. Naturally, this leaves small business as an ever-growing target of online fraud. Many business owners do not take fraud into account and put few, if any, security measures in place to combat fraud. Some business owners go too far and cancel far too many good customers, hurting their sales and repeat business. It can be hard to know what security measures to put into place to cancel fraud, while still letting good business through.
This is exactly where our Fraud Department comes into play. 2Checkout.com uses state of the art technology to help detect and eliminate these potential losses. We run every order through multiple levels of security, collecting dozens of pieces of data. We use the latest industry tools. We continue to hone our skills as a department by attending seminars and sharing information with other companies to detect fraud trends.
Our tools and staff work not only to cancel the fraud that you receive but to make your customers buying experience as seamless as possible. No order is canceled by us, unless it has been thoroughly reviewed by our staff. Our experienced fraud staff not only knows the type of fraud your products receive, but we most likely already deal with it daily. Our goal is to make your e-commerce sales as smooth as possible, by stopping the bad and allowing the good.
Fraud prevention’s goal is to let good business in. The bottom line of any business is to make a profit. If we cancel good orders, we halt your business making its potential profit. We look for the right reasons to approve orders. Because of 2Checkout’s business model we provide services to vendors all over the world selling different products. We recognize that each vendor is unique, and the 2Checkout Fraud Department is set up to cater to that uniqueness. For example, we may have an order that has an I.P discrepancy and different shipping address than the billing. We take these pieces of data, and many other factors into consideration when reviewing the sale. “Every order tells a story”, so we utilize the customized rules and algorithms of our screening system in conjunction with our long time experience to come to the best conclusions. This is why 2Checkout has been able to lower our suppliers’ overall fraud chargeback rate to less than a half percent, over the years.
The biggest misconception about fraud prevention is that it will eliminate chargebacks. That is not the case. Vendors selling products online is vastly different from vendors selling from a storefront. In a storefront you can check the person’s credit card and I.D. Online, we have limited amount of information to make a determination on. Our goal is to keep chargebacks under certain percentage. One tool that is often overlooked is simply making phone calls. If you are uncertain about an order, call. At 2Checkout, vendors can contact our fraud department and we will make those calls for you.
Communication is the key to a successful business. Our vendors can contact us anytime.
