Why is my business experiencing fraud?
A business experiencing fraud may not have the proper security and fraud prevention controls in place. Card-not-present (CNP) businesses that process transactions online are especially at risk to fraud as the authentication process is less tangible than at a brick-and-mortar store. While there are remote authentication techniques and tools that CNP merchants can use, they are still at risk to shrewd fraudsters who know how to bypass these security measures.
The best strategy for an online business experiencing fraud is to implement an end-to-end fraud and chargeback management system that ensures payments are protected from start to finish. This would include chargeback prevention and representment to prevent avoidable chargebacks and recover revenue that would have otherwise been lost.
Merchants should also employ a layered, comprehensive fraud prevention suite that enables the toggling and testing of various tools to reach a customized security level for all types of payments, including credit, debit, multi-currency, card-present and CNP.