How to Protect Your Business from Unnecessary Payments
If you have done everything right when it comes to providing accurate descriptions, having reliable customer support, and a convenient return policy, you should focus on effective fraud prevention. Different kinds of payment fraud, including chargebacks fraud, represent a common problem for any online business. There are tools you can implement and steps you can take to protect yourself and ensure that your online store doesn’t suffer. In this article, you can learn what you can do for fraud protection.
Focus on improving your cybersecurity
Some of the ways you can increase your security level include the following:
- Use device fingerprinting technology
Using software with the device fingerprinting technology is an easy way to reduce the number of fraudsters and bots that come to your store. This system collects information from devices, such as browser version, language, location, and much more, to analyze it and see patterns that could point to fraud. Link device fingerprinting technology allows spotting fraudsters more efficiently while reducing the number of false positives.
- Use TrustChain in your projects
TrustChain is a protocol that acts as a trust ledger. It is used to record transactions between strangers, avoiding central control. This technology allows reducing the number of fraudulent transactions by as much as 40%. By using this protocol, you are able to access the functions of authentic electronic signatures and contract management in a single system, allowing you to focus on the business itself rather than its administration.
- Make sure your anti-viruses are updated
Regardless of which devices and browsers you use, you should have updated antivirus software installed to improve your online protection.
- Establish a proper approval system for transactions
To protect your business, you should consider having an approval system for when transactions exceed a certain amount. This will prevent a fraudulent payment from taking place, and thus you won’t have to deal with consequences.
- Verify orders that look suspicious and set limits
Sometimes scammers may try to make huge orders or attempt to complete an order several times. It is a good idea to have a limit on how many products someone can order at once so you can notice when this happens.
Reduce the number of chargebacks
There are several methods for reducing the number of disputes and chargebacks that allow eliminating friendly fraud while improving customer satisfaction.
- VMPI Chargeback Prevention
The Visa Merchant Purchase Inquiry Program, abbreviated as VMPI, was created by Visa back in 2017. This program allows Visa merchants to respond to disputes before they turn into chargebacks. If you yourself handle a dispute, you can react accordingly to the problem (depending on whether it was a customer service mistake, bill item confusion, fraud, or any other issue) and issue a refund when necessary. If, however, the dispute turns into a chargeback, you lose any control of the process. In this case, no matter if the dispute was legitimate or not, your merchant account and network standing will be negatively impacted.
- Ethoca Chargeback Prevention
Ethoca provides a collaboration-based technology that allows online businesses and eCommerce merchants to fight fraud, greatly reduce the number of chargebacks and recover lost revenue. What’s more important is that this system strives to increase acceptance rate by reducing the number of false declines. This system is easy to set up since there is no need to employ third-party integrations. Overall Ethoca allows merchants to save money while greatly increasing customer satisfaction due to the ease with which they can receive their refunds.
Use modern developments for fraud prevention
Preventing unnecessary payments as a result of fraud should be a priority for any business. With the help of the proper steps and digital tools, it is possible to create a safer environment to grow your business. You can increase your security with the mentioned means, and you will definitely notice fewer fraudulent chargebacks and other attempts to negatively affect your business. Even the most honest business can be crippled by fraudulent chargebacks, which is why it is important to take prevention steps to as soon as possible.
What methods do you use for your business? Do you have any additional suggestions? Please, share your experience with fraudulent activity in the comments below.