In 2021 alone there were 393,207 reports of credit card fraud in the country, a 44.7% increase from 2019. This problem has been around for many years and it continues to haunt both consumers and businesses not only in the United States but also around the world.
Now, if you’re a business, a case of fraud can easily ruin your credibility and it can also cause huge losses, especially when you need to pay for charge backs.
The good news is that you can implement certain anti-fraud measures to reduce, if not remove, the risk of fraud. But the most secure way to protect your business against fraudulent causes is to use credit card verification.
Why Credit Card Verification Matters
According to research, 73% of organizations use credit card verification as their primary anti-fraud measure when doing business online and more than half of high revenue companies treat it as their most important anti-fraud measure. Different credit card companies have also employed verification measures to ensure that their customers won’t be a victim of fraud cases.
Credit card verification can come in many forms. Some merchants would ask for the cardholder’s Credit Verification Code (CVC), which is an extra code that’s printed at the back of the credit or debit card. Visa even has the Verified by Visa authentication system to make it safer for cardholders to shop online.
Other companies also send a code to the customer’s mobile number that needs to be keyed in before a purchase could go through.
Through these measures, both the customer and merchant are aware of the purchase to avoid any attempt at identity theft that could result in charge backs and a lot of hassles on both ends.
A recent study conducted by PYMTNS and Trevi Pay and published in a report entitled “Risk and Resilience: A Business Fraud and ID Theft Report” revealed that 55% of respondents used automated alerts to make them aware of any transaction anomalies, 47% of respondents used automated web monitoring while 34% used automated underwriting systems to help reduce the risks for fraudulent activities in their business.
These days, a lot of businesses are already taking proactive steps to protect their business and their customers against fraud.
According to the report, “how organizations feel about their approaches to combating fraud is indicative of how they evaluate their current methods’ success and the urgency of their need to address fraud.” It added that “at a time when the industry is defined by uncertainty, sustainable growth is imperative for businesses—and fraud has exacted a significant toll on the viability of many.”
Why Choosing the Right Payment Processor Is Essential
For any business, finding a good payment processing partner like First Card Payments is imperative to protecting the interest of both the business and its consumers.
That is why you need to find a payment processor that can offer you secured measures to ensure that no data will be leaked. Plus, all your transactions can go smoothly without any risks of charge backs that could put you at risk for huge losses.