A Friction Free Shopping Experience and Enhanced Ecommerce Security: What You NEED to Know
In the e-commerce world today, there is a big emphasis on finding new and exciting ways to make the shopping experience more streamlined. This has led to the exploration of different options targeted towards eliminating purchasing friction. One of such options is the removal of the password from the checkout process.
At some of the companies that have removed passwords to ensure a seamless checkout process, conversion rates jumped as much as 54%. The bulk of the companies going this route make use of cloud-based solutions offered by businesses like VTEX and Umbrellar.
Other big names in the e-commerce niche are going into partnerships and launching new product lines to ensure far easier purchase processes. Facebook, for instance, is now in league with Shopify, allowing people to make purchases from different shops while on Facebook Messenger. SnapChat also looks to be working on a social commerce platform.
The understanding here is simple. Making purchases easier than they are already will push conversion rates and revenues as businesses will be more likely to attract impulse purchases. Customers are happier because the short attention span of the average web surfer means that any reduction in the time it takes to complete a transaction, for instance, will be more than welcomed. When the customers are happy with the purchase process on a particular platform, they will return and buy more. Solutions that involve the removal of passwords from the shopping process are a welcome development in this regard. This is, however, not without its challenges.
Business have to find a balance between ensuring a frictionless shopping experience and maintaining security.
Latest figures show that there has been a 200% increase in credit card testing, while fraud in the e-commerce niche has risen by 30%. With credit card testing, fraudsters make small purchases with stolen credit card details and then proceed to bigger purchases. General fraud covers everything from the capture of customer data for sale in the open market to spoofing payment systems and purchasing products.
E-commerce companies must be ready to deal with these security challenges, while ensuring a streamlined experience for their customers.
How to ensure e-commerce Security
For e-commerce companies, the signs of fraud are usually visible but often missed for lack of experience or negligence. Below are some red flags you should watch out for during a purchase. Two or more of these red flags should lead to the delay of the purchase process until you have investigated the validity of the purchase, the card details and the cardholder before the transaction is processed and fulfilled.
• First-time customers: If you notice a new transaction from a new client, you should pay attention. Fraudsters in the e-commerce space are constantly on the move. As soon as they accomplish their goal on one e-commerce site, they move to find another website without returning to the old site again.
• International payments: Some jurisdictions around the world make it easier for people to commit credit card fraud. If your e-commerce business operates internationally, you need to be more careful about transactions that can’t be analysed using the AVS system.
• Unreachable customers: Calling the phone number on a transaction is one of the best ways to reduce the risk of frauds on a purchase. If the number you have called is unresponsive, invalid, or not being answered, you need to be wary about the transaction. Similarly, some fraudsters are careless about their modus operandi and will, therefore, enter numbers with codes that do not match their IP address or their provided place of residence. Any of these red flags around the numbers should have you escalate your defence mechanisms.
• Expensive Items: Just as most expensive brands will only sell items to properly researched clients, you should make it a point of duty to ensure that all expensive transactions are investigated for some of the other red flags raised here. Expensive items with high resale values will attract more fraud.
• Larger than average transactions: You should be wary if you notice a customer buying more items than normal. If you are used to closing out a shopping cart with an average of five items per order, and you notice a customer trying to close out a transaction with five times the average, that’s a big red flag. Stolen cards are blocked fairly quickly by the owners once they sense they have been compromised, so fraudsters have a small time window to carry out their nefarious activities. They order way beyond the average in a bid to maximise the stolen payment details in the timeframe available.
• Large monotonous orders: Purchases of multiple items of the same type is another way to use up stolen credit cards quickly. A genuine reseller will normally be more selective about items being purchased from your store. A fraudster won’t mind purchasing the same item even if they are the same colours, sizes, etc.
• Different shipping addresses: If a card has been used multiple times over a short period and items shipped to multiple addresses, there is a significant possibility that you are dealing with a fraudster. Once your check on a payment card reveals this, you should take more steps to verify the identity of the customer.
These are some of the ways you can forestall fraud while ensuring a streamlined shopping experience for your clients. The bottom line is to navigate new ways to make shopping easier for your customers but at the same time keeping your fraud-proofing guard up. In fact, as you break down the barriers hindering faster closures, you should build in more protective measures to keep your e-commerce business safe.
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