Guide to E-Commerce Solutions

Choosing an e-commerce solution doesn’t have be complicated. However, it is easy to get bogged down in feature lists, requirements, and product promises. We want you to have the best information you need to make an informed decision about choosing an e-commerce solution.
Aim for implementing an intelligent e-commerce solution that provides end-to-end payment protection and management solutions. There’s a wide variety of e-commerce fraud prevention technologies available to you. Seeking expert guidance or additional resources on choosing the right one can help you make an informed decision on setting up the ideal e-commerce solution for your business.
Facts on E-Commerce Fraud
E-commerce fraud is a real threat that is not going anywhere. In a recent analysis of their 2016 customer data, Experian identified that Florida, Delaware, Oregon, and New York ranked as the riskiest states for e-commerce fraud. Additionally, this study revealed that cities ranked highest for fraud risk are located close to large ports or airports – making it easier for criminals to reship stolen merchandise.
Compounding this is the risk of data breaches and the ease with which criminals can access customer data. The 2016 Consumer Sentinel Network Data Book, released by the Federal Trade Commission, highlights that of consumers surveyed, 32% reported being victims of data theft. More startling is that for the same time period in 2017, 56% of consumers have been victims of identity theft and ensuing credit card fraud.
This speaks to the need for merchants to protect themselves and their customers with an e-commerce solution that has the intelligence capabilities to detect fraud and theft, analyze customer habits, provide purchase authentication and authorization, and prevent chargebacks.
E-Commerce Solutions for Fraud Prevention
There is no such thing as an off-the-shelf e-commerce solution. Merchants must use a customized e-commerce solution that fits with their business needs, customer types, and payment options.
One of the best approaches is to implement a multi-layered approach that uses the best-in-class fraud prevention technologies. While it is tempting to rely only one piece of fraud detection technology, fraudsters are quick to identify the technology and then overpower it.
With a multi-layered approach, merchants can use the right technology at the right time. When researching e-commerce solutions, look for the following fraud detection technologies:

  • Geolocation. Verify the location of the customer with the actual location of the active card.
  • Biometric analysis. Compare the customer’s fingerprint with that of the cardholder.
  • Address verification service. The issuer compares the address(es) provided during the transaction.
  • CVV. Additional credit card security code required during the final payment authorization.
  • IP intelligence. Deep analysis of the IP address used for the transaction to monitor possible risks associated with this location.
  • Device intelligence. Deep packet inspection and proxy piercing capabilities to expose specific identifying details of the connected device submitting the transaction.
  • 3 Domain Secure. A cardholder authentication protocol for e-commerce transactions and CNP purchases.
  • Merchant co-op. New orders are compared against millions of orders taken by other merchants.
  • SSL. Secure encrypted communication protocols between devices and payment solutions.

An e-commerce solution should do more than allow merchants to accept payments – it must have the power to detect and prevent fraud. Ultimately, merchants are responsible for protecting customer data from the threat of data breaches and hacks.
Learning More About E-Commerce Solutions
Learning about e-commerce solutions shouldn’t be intimidating or overwhelming. We provide expert insight on fraud, chargebacks, payments, and e-commerce solutions. As your trusted partner in payments and e-commerce, we’ve put together a short list of resources that can help you make an informed decision.