Merchant Tips: Securing Against ‘ Fast Fraud’
Americans are making more digital purchases than ever, with sales of items like e-books, gift cards, and event tickets on the rise.
This has led to an increase in card not present (CNP) sales, and a decrease in the time retailers have to verify information, leaving weaknesses in the online payment system.
These weaknesses have created fast fraud, where fraudsters steal digital goods to re-sell them on the secondary market. With the country migrating to EMV to protect in-store point of sale systems in the coming months, online fast fraud cases are likely to increase unless measures are taken to prevent them.
When shopping for fast fraud solutions, electronic payments provider Vesta Corporation offered the following tips:
- Don’t go it alone outsource your in-house fraud solution.
- Look for guaranteed payments or vendors that take responsibility for all payments made for their products.
- Watch for red flags like vendors that over-promise their capabilities.
- Choose expertise not novelty as experienced vendors are more likely to catch cases of fast fraud than new startups.
- Keep the customer experience in mind to reduce dissatisfied customers and abandoned sales.
The best fraud solutions will combine fraud prevention, payment processing and guaranteed payments allowing retailers to sell digital goods with minimal risk.