Intelligent Ways to Manage Fraud for Online Merchants.
As eCommerce businesses grow, so does fraud. Fraud continues to impact online merchants. Online business must be able to manage fraud in order to make sure that they do not lose their business. If a business is using electronic payments, they must be wary of online fraud.
Some online merchants get chargebacks, while others experience various forms of product returns and exchanges which may have fraudulent intentions. Fraud hurts businesses and consumers. Particularly so if online merchants have to increase prices in order to recoup losses through fraud. Some merchants may not know that fraud can be mitigated and even eradicated. So, they end up adding fraud losses into their cost of doing business.
Related: 7 Tips to Reduce Chargebacks
There are many ways of detecting fraud before it happens. With current technological advancements, some larger merchants are even using artificial intelligence to fight fraud. Here are some ways to manage fraud.
Using real time analytics
As merchant account providers horde a lot of real time and historical data, they are able to analyse every online payment transaction in order to detect fraud. As well as this, the vast knowledge and experience of forensic accountants from somewhere like Eide Bailly may also be utilized in these types of cases to see whether any fraudulent behaviour has taken place through these transactions. The transaction is put through many steps before classifying it as possibly fraudulent. With greater computing power, artificial intelligence is able to quickly analyze data to help detect fraud.
Related: Watch Our For These Fraud Trends.
Fraud evolves with Technology
As technology advances, fraudsters also advance and find new ways of perpetrating fraud. An artificial intelligence fraud system can work very quickly and can also learn quickly without being taught or programed by humans. It learns to identify new patterns of fraud in order to get a few steps ahead of fraudsters.
Related: How to Reduce eCommerce Fraud Risk.
Quick or instant process
For fraud checks to be really effective they must be done instantly or with a very quick turnaround time. For online payment transactions, the fraud check must be instant for it to be effective. For other types of fraud checks the turnaround must be very quick. Like for example, an international bank transfer would need to be checked quickly in order for business to be done quick and also to make sure funds are not lost.
Artificial intelligence has played a big part in this process with the help of super fast computing resources and optimized checks and balances.
What are your Options?
Many merchant account providers offer products based on technology and data access to protect from fraud. In particular you need to make sure that your preferred vendor has a system that will protect your customers’ data and transaction information safely and securely.
Choose a merchant account provider wisely. Consider the following:
- Ease of integration with your eCommerce platform
- Uses the fraud guidelines for your business and is learning and optimizing continuously
- Extensive historical data for analytics and artificial intelligence
- Instant fraud detection or very quick turnaround
- Complies with local laws and regulations and industry standards
- Able to handles high loads and scales with your business
- Security is one of the highest priorities
- Affordable for your business size
Contact Us for more information on Identity Verification, Real-Time Check Verification, Credit Card Processing, or eChecks and ACH Transactions. Or take us up on our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!