When eCommerce started to replace regular commerce, people feared the end of retail jobs was near. There is no risk of that – you still need people to fill, process, and ship orders, take calls from customers, etc. Call centers handle online questions if the physical venue isn’t nearby or there isn’t one. All of this means personnel expenses for your online business.
In addition, online buyers don’t need to fight crowds or look for parking spaces. Shopping elsewhere is as simple as entering a different URL.
Cutthroat Competition for Buyers is no Surprise
Against this backdrop, it makes sense that competition for buyers is cutthroat. When you get a large order from a customer, you’re delighted. The prospect of getting a lot of money dwarfs the suspicion that the buyer may not be 100% legitimate.
This risk is still too significant to take. If the buyer is fraudulent, your business could be hit with chargebacks of thousands of dollars. And it’s happened to eCommerce firms.
Ecommerce fraud is hard but not impossible to detect. Here are some tips from the best experts in the area.
Use Screening and Fraud Protection
Use fraud protection and screening services to run a background check on buyers on your behalf. Ensure you’re not paying fraud prevention companies more than the damage from fraud you actually experience. Before contracting a service, weigh the pros and cons.
Monitor Your Orders
If possible, monitor all orders. Some websites go for fulfillment directly, but other eCommerce businesses choose to look over all orders. If one seems suspicious, it might be necessary to take additional steps before accepting it.
Be Comfortable With all Policies
Some eCommerce websites make explicit that they don’t accept orders from unconfirmed or unverified e-wallets. Others require a signature at delivery.
Use CVV and AVS Verification
You should investigate any credit card address data that comes up as incorrect. Your customer might abbreviate or misspell an address or enter the wrong street number. To make sure the location is legitimate:
- Google the address.
- Give the customer a call.
- Tell them the credit card company notified you the address was wrong, and you want to confirm it, so you’re sure they’ll receive their product.
Check the Email and IP Address
If the order is billed to a Nevada address but shipped to one in Maine, it’s not a typical order. You might find neither order originates from a US location.
Overnight Shipping and Rush Orders can be a red Flag
If the name and address being shipped to differ from what’s on the credit card, you probably have a fraudulent buyer. There is an interval between when a card is stolen and when the holder reports the theft. The thief might place a rush order at this time. Call the customer when in doubt and ask them to confirm the order. Tell them you’re trying to ensure they receive the item or that cheaper shipping is available.
Be Careful With International Orders
This isn’t to enforce bias, but specific countries in Africa and Asia are associated with elevated credit card fraud incidences. The AVS system also can’t be used to confirm international credit cards.
Secure a Signature Upon Delivery
The threshold for the signature delivery is very low, maybe a few dollars. The service will help in case of a chargeback, especially if you sell expensive items.
Contact the Customer
Apart from running a background check, the best fraud prevention is probably calling the number. Exercise caution if you get a message that the number is invalid, out of service, or unavailable. Be wary if you leave a message and no one returns your call. Fake buyers won’t provide information by phone because police can trace it. Traces by email are much harder, on the other hand. Ask for a number by email and call it.
