Impacts of ecommerce fraud for online merchants

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You can not deny that the Internet has really made a great contribution on your business especially if you are an online merchant. However, there is a fact that a lot of online retailers have faced with ecommerce fraud.

But do you know that there were 7.9 million case of fraud worthing 1.16 millions euros in 2011 of which 56% took place in e-commerce (according to the European Central Bank)? Or do you know that e-commerce fraud costed merchants over $100 billion in total losses in 2012?

These figures tell many things. 56% shows that e-commerce merchants incurred the most fraud cases.  $100 billion is really a huge loss.

Impacts

The most obvious cost of ecommerce fraud is that there will be a dispute in term of charge even though the product is delivered and the payment is processed.

Furthermore, e-commerce fraud can cause other hidden costs to anti-fraud. They are the cost of decreased customer satisfaction, the cost of rejecting a valid customer who is considered to be suspicious but is valid, the direct and indirect costs due to e-commerce fraud, and the cost of the compensation for anti-fraud employees.

Additionally, online merchants have to bear the chargebacks. BCW indicates that chargebacks can be insidious. The reason is that rates more than 1.5% can cause large fines from MasterCard Visa or in the short term as well as lost merchant accounts in the long term.

Thus, minimising fraud is as  important as maximising accepted orders.

But how to reduce fraud?

If you know e-commerce fraud and run a PrestaShop store, you will need a solution to minimise fraud.

And PrestaMonter understand your need and launches a tool to help to reduce fraud. It is Postpay Australia Post Pro. One of the features of the product is that fraud reduction. This helps you avoid credit card chargebacks.

Postpay Australia Post Pro can be purchased from PrestaMonster.com or from PrestaShop module section.

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