Although technology continues to develop and we\u2019ve got more payment options at our disposal than ever before, there are still challenges and issues that need to be overcome when taking online payments.<\/p>\n
In 2022, $41 billion was lost as a result of online payment fraud<\/a>. It\u2019s estimated that this figure will reach $48 billion in 2023.<\/p>\n Fraud is just one of the challenges facing business owners today. This shows why you need to be diligent and put measures in place to ensure your business and your customers are protected.<\/p>\n To help you get a better understanding, we\u2019re going to take a look at some of the main payment issues business owners need to be aware of, so you can put provisions in place to reduce risk.<\/p>\n As we mentioned fraud in the introduction, this is a logical place to begin. Payment fraud<\/a> is any type of illegal or false transaction carried out by a cybercriminal.<\/p>\n Payment fraud can be characterized in three ways:<\/p>\n Today, e-commerce companies depend on electronic transactions to charge customers for services and products.<\/p>\n As there are more electronic transactions than ever before, there is now a greater amount of fraudulent activity being carried out.<\/p>\n A whole host of different tactics are utilized, including:<\/p>\n Businesses need to put methods in place to monitor payment fraud so that they can act quickly and effectively.<\/p>\n There are three things you need to monitor to detect payment fraud:<\/p>\n Choose a reputable and reliable payment fraud solution that can help you to monitor important data and spot anything suspicious or unusual as efficiently as possible.<\/p>\nAlso read:<\/span> The Top 10 In-Demand Tech Skills you need to have in 2021<\/a><\/span>\n Another payment issue that businesses need to be wary of today is what\u2019s known as a \u2018chargeback.\u2019<\/p>\n Chargebacks can ruin brand equity and create excess costs. This issue is worrying to the extent that some businesses have found themselves needing to close indefinitely because of an excessive number of chargeback claims.<\/p>\n A lot of business owners don\u2019t factor in chargebacks when planning their finances nor do they consider how this will impact their payment processing fees.<\/p>\n Of course, a chargeback in itself isn\u2019t an illegal activity. If a customer hasn\u2019t received an item or they feel they\u2019ve not gotten the service they were promised, they may dispute a transaction.<\/p>\n However, chargeback fraud is a problem. Often referred to as friendly fraud, this happens when a user fraudulently tries to secure a refund by utilizing the chargeback process.<\/p>\n Rather than bringing up the possibility of a refund with the merchant, the consumer goes straight to the bank to initiate the chargeback process<\/a>. They will falsely claim that they never received the product or that the product they received was defective. In some cases, they may state that they never even authorized the transaction.<\/p>\n No matter what the reason may be, chargeback fraud happens when someone tries to get a refund under false pretenses.<\/p>\n To fight back, it\u2019s a good idea to look for new tools that can help you to locate user behavior patterns such as Quantum Metric so you can determine when a transaction does not reflect typical purchase activity. This could indicate that a cybercriminal is trying to utilize the user\u2019s payment source.<\/p>\n Shutting down such transactions before they happen is a great way of proactively limiting chargebacks.1. Payment Issues & Fraud<\/h2>\n
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2. Chargebacks<\/h2>\n
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