There is a new five-letter “F word” on the scene and it’s a menace for any business involved in credit card transactions. The word is fraud and it’s spreading like wildfire across the global economy.
So the question needs to be asked: acceptable fraud levels, is there such a thing? Not for any company wanting to boost its profits, but there are steps you need to take to ensure your business will not be the next target.
As any industry pundit would know, credit card fraud is on the rise. Fraud on Australian payment cards continues to increase in the card-not-present space, reflecting a global trend both in online card fraud and in cybercrime in general. Card fraud rates in recent years have grown from below 50 cents to 60 cents for every $1,000 spent.
According to a study of consumer payments by the Reserve Bank of Australia, the proportion of card purchases made online, by telephone or mail order represent nearly 25 per cent of the total value of debit card purchases and about 40 per cent for credit cards.
Despite the readily available statistics on card fraud, merchants aren’t always on top of this. And not having a handle on fraud levels can greatly affect revenue and the brand or company’s reputation as well as fines given out by the by the card schemes when fraud goes over an “acceptable” level.
That means credit card merchants should fight fraud with up-to-date certified fraud prevention tools and leverage techniques to analyse cross-merchant fraud trends and behaviors, draw informed conclusions and enhance fraud detection processes that advance risk strategies and detect subsequent attempts.
The good news is there is a wide range of fraud prevention measures available to merchants, but, where these are not applied, fraud can happen at any time and with major consequences.
Through IP Solutions’ ability to offer multidisciplinary card fraud detection services from a payment gateway level, to advanced overlay services and call centre credit card filtering those risks are minimised.
A fraud screening model instantly approves or rejects an order by relying on a real-time, multidimensional fraud decisioning engine. This model need not hold up orders in a review state, and so it isn’t a burden on merchant resources or risks customers becoming annoyed.
To find out how IP Solutions can provide the services you need to protect your data, speak with one of our specialists today.