Fraud & Prevention
Remote acceptance of payments does not only offer ease-of-pay to your customers, it unfortunately also holds a limited risk of fraudulent transactions.
In case of E-commerce and MOTO-transactions it is not always possible to assess the true identity of the customer and the legitimacy of the transaction. Swindlers take advantage of this and make purchases with e.g. stolen credit cards or credit card data.
Fraudulent transactions can lead to chargebacks: the rightful card holder reclaims his money and the amount can be claimed back from your company. Timely detection and prevention of fraud are therefore of the highest importance.
The risk of fraud depends a.o. on your:
- Acceptance process: unlike MOTO, E-commerce-acceptance offers possibilities to detect real-time fraud. You can e.g. check the IP-address of your customer against the country in which the credit card has been issued. The safety products MasterCard SecureCode & Verified by Visa are only available for E-commerce.
- Products: ‘high-value and tradable goods’ versus ‘low-value and non-tradable goods’. Are you selling highly tradable products of great value (e.g. electronics, watches) or low-value, hard-to-trade products such as flowers?
- Target group: businesses versus consumers. Do you primarily target businesses or consumers? The fraud risk in Business-to-Business is considerably smaller than in Business-to-Consumer.
- Market: local versus international. Is your website only Dutch or also English spoken? Do you ship abroad? Your (online) 'exposure' is one of the factors which determine the interest of your website to swindlers.
Download the Fraud & Prevention brochure here to read more about Fraud & Prevention. This brochure will make you more aware of the risks of fraudulent transactions and related chargebacks and inform you about measures of prevention
EMS advises to read this brochure in conjunction with the brochures 'Chargebacks & Prevention', ‘MasterCard SecureCode & Verified by Visa’ and 'Credit card data storage’