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How to Prevent Fraud without Compromising the Customer Experience
As the popularity of online shopping grows, fraudsters are eager to exploit flaws in online security. Certain departments within an e-commerce organization, in particular, can make the company more vulnerable to fraud.
Fremont, CA: Delivering a great shopping experience entails more than just the shopping; it also entails the payment. Today, nevertheless, merchants are so preoccupied with the risk of fraud and attacks that the ease of checkout frequently suffers, leaving customers frustrated and carts abandoned. Risk-mitigation tools that are too strict can cause friction in the payment process. Multiple security and authentication steps, low tolerance rules, and time-consuming hurdles are leading to an increase in false declines, with legitimate card-not-present (CNP) transactions being rejected due to a suspicion of fraud. Relaxing fraud prevention measures to allow for a more seamless shopping experience, on the other hand, exposes merchants to a significant risk of undetected fraudulent transactions as well as an increase in chargebacks.
Here are some tips that can help companies balance strong payment fraud prevention while providing an exceptional shopping experience:
Communication is Essential
As the popularity of online shopping grows, fraudsters are eager to exploit flaws in online security. Certain departments within an e-commerce organization, in particular, can make the company more vulnerable to fraud. Consider the marketing and sales departments. In order to build stronger brand equity, the team may employ tactics such as issuing discount coupons, which create small gaps in the business' security. As a consequence, the fraud team may submit all coupon entries for manual review, potentially harming the customer experience. Employees in fraud-prone areas of a business must know the warning signs of fraud, develop prevention skills as well as have a seamless process to report questionable behavior. To reduce risk as much as possible, it is critical that all departments collaborate effectively and are in constant communication.
Utilize Solutions That Combine Dynamic Risk Management and Payment Processing
Selecting solutions that allow you to combine risk management tools within your payment processing platform aids in providing your customers with a seamless as well as fraud-free payment experience. A dynamic risk management database that uses millions of customer profiles and machine learning allows you to distinguish between fraudulent and legitimate transactions in seconds. Machine learning has emerged as a critical component in the fraud detection process, as well as every e-commerce company should take full advantage of it. Deploying a machine learning-based solution that prevents fraud while maximizing legitimate transaction approvals can provide a high-quality shopping experience without sacrificing security.