Did you know that the amount of traffic your website is getting could correlate negatively to the amount of chargebacks you’re receiving?
Retail chargebacks are on the rise and stalling growth for numerous businesses worldwide, thanks in large part to a growing culture of ‘friendly fraud’.
Chargebacks aren’t just down to the odd shopper wanting to get their money back, though. Highly-sophisticated hackers are in the business of creating software and artificial intelligence programmes designed with credit card fraud in mind, triggering plenty of chargebacks in retail.
Some call it ‘card testing’, where hackers have stolen numerous credit card numbers and created software that visits websites with the intent of testing their ill-gotten gains with a purchase.
With Forbes reporting that e-commerce fraud rose by 30% in the first four months of 2017, businesses can be at a loss as to how to battle such a dangerous unseen enemy.
How high web traffic leads to retail chargebacks
Usually as a business owner or senior manager, high volumes of traffic are something to get incredibly excited about. Keep those numbers high and work on a lead conversion strategy and that traffic could quickly transform into sales.
Sadly though, that high traffic could also mean that your site and business has been identified as an easy target for online hackers involved in practices such as card testing, which has helped to open the floodgates to your business. Though you’re doing nothing wrong and are on the receiving end, you will likely be punished by chargebacks as a result.
Chargebacks in retail can be especially punishing too; you’re not holding onto your capital and could be blacklisted by the financial institutions you work with until the problem is sorted.
Some solutions may only be a sticking plaster, too. Switching to an EMV system was supposed to help reduce fraud for e-commerce sites. Experts now predict that switching to EMV could actually cause fraud to spike, hitting online websites where it hurts the most.
How to reduce chargebacks and keep customers happy
Working with a professional payment consultancy experienced in helping companies to reduce the frequency of their chargebacks can help you to avoid fraudulent online behaviour, keep hold of your profits and grow your business.
Fibonatix is able to work with businesses to oversee how their e-commerce operations are handled, identify room for improvements and work to reduce the potential of chargeback fraud.
How to battle automated schemes like card testing, though? There are many steps businesses can take, such as identifying areas where the traffic is coming from to set up blocks, improving the verification process whenever a purchase is made and putting other digital fraud prevention measures in place.
That could also extend to the way you market your business online. Instead of putting your business at the mercy of global fraudsters, it pays to streamline and better target local people who are more likely to become long-term customers and brand advocates.
Fibonatix will scrutinise every facet of your business to identify payment issues and reduce the potential for online fraud. We take a holistic approach to payment problems and business growth; contact our team today to find out more.
A culture of chargebacks and ‘friendly fraud’ is hitting businesses of all shapes and sizes. How can companies adapt to an evolving consumer chargeback philosophy, protect their profits and keep markets happy at the same time? Read 'What is friendly fraud and how do chargebacks work?' to learn more.