The success of your e-commerce website relies on important factors namely quality of products, website design, pricing, delivery and transaction safety. However, a fault in transaction safety can completely ruin your reputation. It is one of those critical factors that can account for losses for both, the buyer and the seller. In fact, some of the biggest e-tailers introduced COD (Cash on Delivery) earlier in India, so we could overcome the fear of online fraud and start ordering from the internet. Yet, as an online seller there are steps you can take to ensure you and your customer are never cheated by fraudsters.
Different Kinds of Payment Fraud
To get an idea of how fraudsters operate, we have listed down the few methods they usually engage in.
Credit Card Fraud: Here it’s not necessary that a person needs to physically steal the card. They could have somehow extracted the details digitally. This is when knowing and testing your customer identity becomes an important step in preventing the fraudulent transactions.
Refund Fraud: Another common way how sellers get cheated is when the swindler ‘accidentally’ overpays for his order and then demands for a refund. Mostly, they will ask for the refund through an alternative way and not through the card that he or she was charged on. This is also another giveaway that this may be a suspicious transaction.
Card Testing: A fraudster may have the credit-card details. However, he or she may not have the expiration date or CVV etc. However, they will continuously try combinations on different web stores till they hit the right one.
Chargeback: Chargeback is a simple ploy, when you order something online, receive the goods you have ordered and then claim that the credit card was stolen and that they should get a refund.
Now that we have explored the major ways that people can steal on the internet, here’s some good news! Magento 2 owners have the option of preventing these transactions by putting in certain measures in place. These are third-party solutions that can be easily synced with your Magento 2 account making it almost native to the platform. These are PayPal Fraud Management Filters and Signifyd Fraud Protection.
PayPal Fraud Management Filters
These filters allow merchants to verify if the current transaction is suspicious or not.Once the information is correctly verified by the configurations set up by the store owner, the transaction will proceed or be denied. There are two types of filters that are available to Magento 2 users; Basic and Advanced. In Basic filters, one can set up total purchase price or total item ceiling, look for mismatch in shipping addresses, zip risk match filter etc. In Advanced, one can opt for buyer authentication filters, Geo-location failure filter, Bad-lists, custom filters, product watch list filters. The filters are set up on the Pay-pal side, and one can watch these flagged transactions in the orders menu. Depending on the severity of the alert, Pay-pal will automatically reject it or send to the owner for a manual review.
Signifyd Fraud Protection
Another third-party solution one can use on Magento 2 is one of the world’s largest anti-fraud protection software, Signifyd. Their innovative system is based on machine-learning and uses a ton of data to make these crucial decisions of stopping or proceeding with the transaction. In fact, if they make a mistake with the processing, they are willing to give their clients 100% compensation for the order. If you’d like to have some control over the decision-making process regarding the review of suspicious orders, you can configure it accordingly. However, their verification process takes as little as 5 seconds and is not something that will interfere with the customer’s journey in any way. Many Fortune companies are using this solution in a big way and Signifyd is doing its bit to save companies and customer millions of dollars worth of money and time.
If you’re interested in setting up your e-commerce site without the worry of fraudulent transactions, these are clearly viable options. You can find out more about securing your sites with our e-commerce team at GR Imagine.