- 1 How to deal with the two most prevalent types of payment fraud
How to deal with the two most prevalent types of payment fraud
Global eCommerce sales are expected to reach $5.5 trillion in the coming year. Payment fraud is on the rise as more people make online payments. Fraudsters are salivating at the prospect of this expanding landscape.
Ecommerce website security is essential if you are creating or running an online store . It is essential to build your store on a secure platform. This will protect you and your customers against fraud as well as ensure that your customers feel safe when shopping on your site.
This article will discuss key data privacy policies that impact online merchants. We will also discuss best practices to protect your online store against fraudulent transactions that could threaten revenue.
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There are two types of eCommerce payment fraud:
1. Credit card fraud
It’s not a new problem in eCommerce. Unfortunately, credit card fraud won’t go away soon. Online sellers who store customers’ payment information for future purchases are a target for hackers, even though payment details are frequently stolen from customers via phishing schemes.
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A single hack can result in devastating consequences. This could include the loss of thousands or even millions of credit card numbers. The payment industry is constantly improving security standards, something you, as a seller, need to be aware.
The Payment Card Industry Data Security Standard is a major industry standard. It’s a set of requirements that ensures that credit card companies maintain a safe environment for customers.
PCI DSS contains guidelines for how to safely handle cardholder data and six major requirements.
- Secure your network
- Protect cardholder data
- Keep a program for vulnerability management in place
- Strong access control measures should be implemented
- Monitor and test your networks regularly
- Keep an information security policy
PCI DSS is applicable to all credit card processing organizations, including American Express, Discover Financial Services and MasterCard. PCI DSS applies to all organizations that process credit cards from the major card networks – American Express, Discover Financial Services, MasterCard, and Visa.
Wix: How to reduce credit card fraud
You will feel more confident building your eCommerce business on a secure platform already configured to comply with PCI compliance. Wix eCommerce, for example, invests heavily in website security in order to maintain a PCI DSS level 1 merchant and service provider, which is the highest level of compliance.
All Wix stores are automatically compliant. Wix eCommerce allows online sellers to save time and money by allowing them to grow their businesses without having to worry about hosting and security.
Considerations for European Sellers
It is important to know the Payment Services Directive 2 (PSD2) if you are selling in Europe. PSD2 refers to a set law and regulation for payment services within the European Union (EU), and the European Economic Area. These requirements could affect any online entity that processes payments in the EEA, where both the buyer and seller’s banks are located.
PSD2 was approved in 2015. However, the most important elements for online payments were implemented in stages starting in 2019 and ending in 2022.
This directive contains new requirements to make online payments safer than ever. Online shoppers may need to complete a quick verification before they can make a payment.
Customers’ verification processes may differ from one bank to the next. Wix eCommerce makes it easy to sell. All Wix shops are compliant.
Learn more: Accepting payments by your customers using SCA (PSD2)
02. Fraudulent transactions, chargebacks
You’ll want to take steps to protect your customers and your business from fraudulent transactions. You can charge a fee back if someone buys an item from you store using stolen credit card details.
There are two types of chargebacks.
- Related – When the customer claims that they didn’t receive the goods, or believes the product is not as described.
- Fraud related – When the customer claims that they didn’t authorize the charge
Banks use chargebacks to resolve credit card disputes. If they feel that the claim of the consumer is valid, they will initiate chargesback to reverse the payment.
Fraudulent online sellers can lose the merchandise they ordered, as well as any money earned from the sale. Depending on the payment provider, they may also have to pay a chargeback fee.
Wix: How to avoid fraudulent chargebacks
A secure payment provider is a great way to reduce fraudulent transactions.
Wix eCommerce has 50+ secure payment options to choose from. This includes WixPays, which is a native payment option. Multilayered security–a secure platform and a secure payment provider- enables you to protect yourself from fraudulent transactions that could lead to a chargeback.