eCommerce fraud is real and costs merchants dearly. Every $1 of fraud cost U.S. retailers $3.36 in 2020 compared with $3.13 in 2019 according to Lexis Nexis. Unfortunately, no business is immune to fraud but you can have tools in place to mitigate risk.
If your store is on the BigCommerce platform, a beta opportunity has opened up for merchants interested in decreasing fraudulent transactions, using Checkout.com.
The beta involves testing the “flagged payments” feature of checkout.com that automatically requires merchants to manually review transactions the system believes are potentially fraudulent.
According to BigCommerce, the benefits of of the “flagged payments” feature include:
- Lower costs — Voiding a transaction instead of having to refund it due to fraud is less expensive for merchants.
- Apply your personal knowledge of the market — Judge for yourself whether or not certain transactions might be fraudulent.
- Strike the right balance between payment fraud protection and approval rates for your business — You can apply risk scoring and routing logic to different segments and criteria with Checkout.com’s easy-to-use solution.
In order to participate in this beta program, United States based stores must be using the BigCommerce optimized one-page checkout and be willing to manually review transactions that are flagged as potential fraud.
Scott Sanfilippo began his eCommerce journey in 1994 by co-founding one of the Internet’s first online retailers, TheFerretStore.com, which was acquired by PetCo in 2006. In 2001, he co-founded the eCommerce design and marketing firm Solid Cactus, which was acquired by web.com in 2009. Today, Scott is the General Manager of Your Store Wizards and lives in Delray Beach, FL. Scott can be contacted at email@example.com.