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The single positive outcome of the global pandemic is the increase in online orders. But, with more orders, the number of false chargebacks from fraudsters has also increased.
However, this increase in chargeback amounts does not affect vendors who file disputes, right? Wrong! While 80% of global merchants in 2018 filed disputes for illicit chargebacks, only 18% of them were successful. Therefore, relying on winning chargeback disputes is one of the least efficient solutions to the growing chargeback fraud problem.
What Can Vendors Do?
When it comes to carrying out digital payment transactions, most online shoppers don’t settle for anything else than a smooth, swift experience. Unexpected hindrances or extra security checks simply irritate customers and make them decide to take their business elsewhere.
If online vendors want to retain customers, they need to implement payment systems that address the following:
- Does not disrupt the customer’s buying experience.
- Prevents payment system glitches.
- Separates legitimate customers from fraudsters.
- Dynamically approaches and spots mishaps and fraud risks.
This is why investing in an efficient chargeback fraud management solution is a must.
How to Get a Fraud-Resilient Payment System?
There are many anti-fraud payment processing solutions available to online businesses. The finance sector has started investing in them, and eCommerce companies need to do the same. They should choose tools that can:
- Monitor every transaction for fraudulent activity.
- Recognize user behavior and patterns.
- Promptly recognize legitimate customers and exempt them from complex and time-consuming user-verification processes when they make repeat purchases.
- Minimize fraud for complicated or high-volume payments and transactions.
These solutions are essential to account takeover prevention because they automatically detect “red flags,” which saves online businesses millions every year. They are also regularly updated to address the latest fraud schemas.
Keeping the Business Competitive
If online vendors experience recurring chargebacks fraud problems, they not only suffer from losses, but their reputation as sellers can be ruined. No online shopper wants to buy from an online merchant with an unsecured eCommerce site.
Repetitive chargeback dispute failures can also lead to account termination, and vendors who use third-party eCommerce platforms to do business can lose their accounts and end up with legal problems.
Online businesses need to implement chargeback management solutions so they can stay one step ahead of fraudsters.
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