Although it can’t quite be described as rampant, fraud does exist in the world of ecommerce. A few entries ago, we set straight a myth on the dangers of ecommerce shopping. We also gave useful tips on how to protect shoppers from ecommerce fraud.
Ecommerce shoppers are commonly thought of as the only victims of fraud. In reality, ecommerce fraud is a problem that haunts merchants as well. Just as there are fraudulent merchants, there are also fraudulent shoppers who attack legitimate online merchants.
How can merchants protect themselves from ecommerce fraud?
Volusion, an ecommerce solution platform, has just introduced Fraud Score, a credit card protection service that protects ecommerce online merchants from fraudulent transactions. It is an informational tool that aids in gauging the risk of orders before they are processed.
Each time an order is placed on an ecommerce merchant’s website, the customer’s information is cross-checked in real-time against a large database of thousands of merchants and over 100 million transactions to see if the order came from a legitimate card holder.
Fraud Score scans and verifies more than 15 fields such as IP address, bank identification, address verification, proxy detection, etc. to identify any pattern or trend associated with fraudulent orders. After going through all these criteria, an over-all risk score is delivered to determine the level of risk or the legitimacy of each order.
With this new service from the ecommerce solution platform, Volusion, the risk of ecommerce merchants falling prey to such scams will be greatly reduced. Additionally, the number of chargebacks an ecommerce merchant pays will also reduced. Most importantly, however, is having the peace of mind and security in knowing what lies beneath each transaction that is processed – a value so substantial that it can never be quantified.