How to Reduce Credit Card Fraud, Increase Conversion Rates
There is an increasing risk of online credit card fraud, which is costing businesses dearly. The risk is even greater when trading overseas. Businesses never want to report a rise in charge-back or refund rates and reduction in order volumes due to stringent card screening procedures, resulting in the consumers abandoning your shopping cart and thus thwarting legitimate sales. A poor customer experience can easily translate into reduced conversion rate. Of course, you never want to face such a situation. In that case, automated online identity verification services can come to your rescue and help reduce credit card fraud while boosting sales, enhancing customer experience, and increasing ecommerce conversion rates.
Need for Identity Verification in Online Fraud Reduction
Too many unwarranted credit card checks may risk your reputation and cause prospects to believe that you provide a poor customer experience – we all know we shouldn’t make it harder for people to buy from us! Of course, by not following a stringent authentication system, you do not want to expose yourself to a world of charge-backs and refunds from fraudulent consumers. In order to reduce credit card fraud, boost sales, improve customer service, and increase conversion rates, automated identity verification holds the key.
With ID verification, businesses can benefit in more ways than one. The system helps by:
- Instantly authenticating the identity of a new buyer
- Substituting delayed fraud detection with real-time intelligence
- Reducing common errors
- Supporting integration with CRM systems
- Improving customer interaction experience
- Immediately verifying customer identity and providing accurate information
Identity Verification Process
Authentication at the point of purchase can play a big role in safeguarding customer’s secret information while creating a safer environment for online transactions, reducing credit card fraud, enhancing customer experience, improving operational efficiency, and boosting business growth. Automated identity verification and authentication process verifies transactions within seconds, while easily uncovering fraudulent behavior.
The automated authentication process works as follows:
- When the consumer makes a purchase, they must use any of their social networking accounts to sign in. This enables easy verification of their information and assessment of their trustworthiness.
- For a user assessed with a lower rating, the retailer may refuse the sale or give them the option to log in with an alternative social network account to improve their score and verify themselves. In some cases, the retailer may choose another identity verification measure to improve consumer experience. The sale is immediately processed if the authentication system finds the user trustworthy.
User Authentication Methods
One of the biggest benefits of using the ID verification process is the instant automatic elimination of fake profiles, ruling out the risk of fraudulent sales while ensuring trustworthy sales. As a result, there is a significant reduction in online credit card fraud.
There are a few other user identification methods, including:
- Visa/MasterCard SecureCode: Leading credit card providers take stringent identity verification steps to ensure clean online financial transactions. They use integrated credit authentication methods that verify identity of users through the details shared by them in the purchase form.
- Online Verification tools are available that feature plug-and-play widgets that are specially designed for ID verification, allowing instant, cost-effective identity verification via social media, alongside a number of statistical indicators and cutting-edge tools are used to separate a real profile from a fake one. These widgets are often offered as a free trial to help you to test the efficiency of the system.
- Local ID authentication services: Many local online ID verification companies have access to government databases to verify identity of users and thus reduce credit card fraud and improve ecommerce conversion rates.