As e-commerce continues to grow, merchants must focus on the practicalities of this evolving shopping paradigm. Customers are keen to use merchant websites and mobile apps to browse, shop, and buy – but they want this on their terms. This means minimal interruptions, no complications, and guaranteed security.
Customers primarily want a seamless and secure front-end experience, letting them shop with minimal concerns over data security. To deliver this, merchants must shift focus from a shiny website and app to addressing the ongoing threats to payment security and chargeback fraud.
Payments security and the chargeback fraud applications must not be overlooked in the rush to deliver on customer demands. With the continued demands by customers for a true omnichannel experience and the buy-anywhere experience, fraudsters are lurking in the shadows ready to seize on merchant and customer missteps.
Simply put, there should be no excuses to slip up on e-commerce security. The tools, technologies, knowledge, and experts are readily available for all levels of merchants. Customers expect merchants to secure and protect their transactions.
Trends Shaping E-Commerce
The fight to stand out in the crowded digital marketplace can be a daunting prospect. The challenge for all CNP merchants is in competing with digital goliaths. In knowing the trends shaping e-commerce and m-commerce in 2018 and beyond, merchants can achieve and maintain a competitive.
- Automated return process. This solves one of the lingering problems with e-commerce – buying products sight unseen. An automated return process can limit chargebacks and friendly fraud along with enhancing customer satisfaction. Update your return/refund policy to respond best to the way customers are shopping and buying.
- M-commerce adoption. The m-commerce sales numbers are only increasing, which highlights the need for merchants to shift focus to a seamless and secure mobile app experience. Brand loyalty depends on a successful customer experience.
- Personalization. Virtual assistants, instant messaging marketing, and customized page display. Customers want the brick-and-mortar personalization experience extended to their m-commerce and e-commerce shopping.
- Customer insecurity. Today’s customers know the risks of e-commerce, the threat of fraud and data breaches. Customers must have confidence in merchant payments security. Remind customers that password requirements and security measures are for their benefit.
More and more customers are “preview shopping” online before visiting a brick-and-mortar store. The omnichannel experience gives merchants the chance to capture customers both in-store and online. However, it all comes down to providing customers a truly personalized, dynamic, secure, and customer-friendly shopping experience.
E-Commerce Security of the Future
How, when, and where customers do their shopping are the biggest influencers on how e-commerce security is evolving. What we know today is that chargeback fraud prevention and payments security as a whole cannot remain static. What worked in the past cannot be counted on for the future.
The shiny new omnichannel experience that delivers on customer wants must not exclude merchant, issuer, and acquirer demands. As sales technology continues to evolve, payments security must keep pace – outsmarting the fraudsters and knowing the potentials for failure.
- Verified by Visa in 2018. In April 2018, Visa is making changes to its Verified by Visa program to phase out static passwords and problems with its enrollment process. These changes are being made to address threats to customer security.
- Mastercard Identity Check. Often referred to as selfie pay – Mastercard allows customers to verify their identity with a photo of their face or a digital fingerprint. Purchase speed and authentication happens immediately, giving merchants and customers what they want.
- Real-time security. The customer transaction happens instantly, requiring merchants to provide real-time verification and authentication. This depends on completing back-end fraud and authentication checks while the customer is browsing and adding items to their cart.
- General Data Protection Regulation (GDPR). In May 2018, GDPR replaces the EU Data Protection Act. This legislation places new demands on merchant responsibility for data security.
- Multilayered intelligence. Multilayered intelligence extends to merchant-customer knowledge and using the right security solution at the right time. The guessing is eliminated with a multilayered approach.
The good news for merchants is that the future of e-commerce sales is bright. The even better news is that the technologies to secure these transactions is keeping pace. However, there are still lingering questions about how artificial intelligence, cryptocurrency, the Internet of Things, drone technology, and the use of robots can and will impact e-commerce security.
Do Not Stand Still
If there is one thing we know for sure, it is this: change is coming and it’s coming fast. Merchants must be ready to evolve and anticipate customer demands and fraudster threats. The proactive approach is a must. This means acting today to be ready for tomorrow.