A survey by a leading voice in the payment services industry has shown how important it can be to partner with an experienced payment service provider if you’re serious about business growth, especially with so many cultural shifts and rising trends occurring in the way people pay for goods and services.
PYMNTS.com’s latest Global Fraud Index makes for interesting reading. According to the report, total fraud has declined 35% from the first quarter of 2016 to 2017. That’s reason enough to celebrate for any online payment service provider until you dig a little deeper and see that fraud rose 146.5% among online department stores. 1 in 10 orders worth over $500 are also deemed fraudulent, and online fraud techniques are being increasingly diverse and more sophisticated.
With the threat of online fraud growing and a real concern for digital operators of all sizes, working side by side with the right online payment service provider can help to mitigate risk, see you keep hold of your profits and build stronger relationships with your customers.
Preventing fraud with a payment service provider
There are so many benefits to working with a personable, experienced online payment service provider that go beyond futureproofing your business and customers against fraudulent activity.
The right payment service provider will build a strong relationship with you and your business to assess your existing payment structure and work to streamline it to not only combat the growing threat of fraud, but to also help improve your company’s cashflow solutions and help you grow.
At the same time a payment service provider will work with you to simplify the world of payment solutions, helping you to cut through complicated compliance and administration, allowing you to focus more on growing your business
They’ll also work to assess your market and help you discover the way your core customers’ payment habits are evolving and what you can implement to keep up with your market. That point is crucial to businesses fighting online fraud, as more digital tools and methods continually crop up designed to hit profits hard.
So, what challenges are businesses facing as online fraud increases?
- A growing chargeback culture: The Global Fraud Index points out that ‘friendly fraud’ in the form of chargebacks is on the rise. Making some key changes to your business can significantly reduce the frequency of chargebacks you face whilst also building consumer trust
- Redirecting company payments: Mandate fraud is becoming a problem in the UK, with online scams costing business bank accounts approximately £32 million in the past year. Again, working to put the right systems in place can help negate mandate fraud and keep you safe
- Data breaches: How safe is your customer data and what are you using it for? Fast food chain Sonic in the U.S. has recently been the victim of a data breach which included customers’ credit card numbers, affecting their overall shares. The right data strategy is a must, especially with GDPR legislation incoming
- Bots, doxing and more: Similarly, online fraud methods are becoming more sophisticated thanks to automated programmes such as bots. Artificial intelligence is one way to fight those techniques though, and also goes a long way to building overall consumer trust in your brand
Find out more about preventing online fraud and growing your business with a payment service provider by speaking to a member of Fibonatix’s specialist team today.
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.