eCommerce fraud is expected to result in $6.4 billion losses by 2021, as the recent research by Aite Group shows. Losses caused by false declines are likely to exceed eCommerce fraud. Are you using secure and reliable fraud prevention solutions? Who can help you with this? Just read and you’ll know.
False Decline Losses & eCommerce Merchant Account
False declines associated with card processing happen when a customer, without bad intention, and within his/her spending limit, finds his/her transaction rejected. Of course, this embarrasses the customer and creates headaches for the merchant.
Let’s see what the leading independent research and advisory company Group Aite’s reports. So, 62% of merchants having participated in the company’s survey state their false decline rates have grown over the last 2 years.
What about you? How are you fighting the problem of false declines and payment processing fraud? One thing is certain: you can’t succeed if you aren’t working with a true payment processing expert in your field.
So, search for a respectable credit card processing company that offers the most advanced fraud prevention and chargeback mitigation solutions in the industry. With a true payment expert, you can enjoy the safest and cheapest services for payment processing services, including an eCommerce merchant account.
The Problem of False Declines & eCommerce Fraud
In U.S. eCommerce, the volume of false declines makes up almost $2.1 billion on a yearly basis. In reality, the real cost of false declines is much more than that.
Mobile account takeover (ATO) has grown 200% YoY (year over year) over the 4 years in a row, as Experian reports. According to “2019 Identity Fraud Study” by Javelin, ATO losses accounted for $4 billion in 2018 and $3.4 billion in new account fraud losses. By the way, ATO fraud increased 31% during the 2017 holiday season.
Rapidly-growing merchants are anticipated to greater efforts so to improve authorization success rates. According to Visa, network tokens guarantee 3.2% authorization lift over (on average) via PAN for CNP transactions. What this does is to eliminate fraud-related declines, expired, or lost credentials, as well as make the issues more confident.
To sum up, losses caused by false declines are likely to be more than eCommerce fraud. Work only with a reliable merchant services provider to avoid major losses in this regard.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated high risk merchant account processor in the country that’s committed to offering the safest and cheapest eCommerce merchant account in the field. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.