Credit Card Fraud - Greater Danger In The New Century
The 21st Century has a new set of challenges for businesses and consumers alike. While the world continues to move toward plastic currency, the threat of fraud has grown to a degree that is more prevalent than ever. It used to be, in the 20th Century, that one only had to worry about cash and check fraud. While credit card fraud did exist, it was not quite as common because technology had not advanced to the point that it could be so easily manipulated. And frankly, people just didn't use credit cards as much because it was harder to get them, for starters. But as credit standards slackened and plastic became available to everyone, it just lent itself to more abuse. So are credit cards a greater danger in the new century than any other form of payment? You bet they are. Here's why:
1) Chargebacks favor the consumer.
When you sell an item in a fraudulent transaction, the customer always has the option to charge the merchandise back as never having been received. It can often be hard to prove whether or not the customer was actually the one, who committed the fraud, and as such, that puts you in greater danger of losing sales. While you may receive a pittance for the merchandise lost, you will never recover the full value, and as such, you'll end up in the red. Too many of those types of transactions can quickly put your entire business in the poorhouse, and it can make you an easier target for other predators, (or the same ones in some cases).
2) Fraud is scalable.
Technology has also enabled fraudulent individuals to grow their operations in a manner not seen before. It is easier to get fraudulent numbers and to use them to initiate transactions before fraud can actually be proven. Of course, you put yourself at an advantage if you are using a reliable bank identification number database. These services stay on top of credit card issuances and can tell in a hurry if the card is legitimate, often within seconds. The problem lies with not finding the right provider. Some, in an attempt to save on costs, cut back their coverage and currency, and if you are aligned with one of these organizations, then you may not be getting the information that is necessary to avoid a chargeback.
It pays to remain vigilant in the business world of the new age. As time goes on, crooks will only grow more advanced in how they attempt to attack your business. You owe it to your success and to the well being of your customers to fight back and implement prevention standards that are ahead of the game.
1) Chargebacks favor the consumer.
When you sell an item in a fraudulent transaction, the customer always has the option to charge the merchandise back as never having been received. It can often be hard to prove whether or not the customer was actually the one, who committed the fraud, and as such, that puts you in greater danger of losing sales. While you may receive a pittance for the merchandise lost, you will never recover the full value, and as such, you'll end up in the red. Too many of those types of transactions can quickly put your entire business in the poorhouse, and it can make you an easier target for other predators, (or the same ones in some cases).
2) Fraud is scalable.
Technology has also enabled fraudulent individuals to grow their operations in a manner not seen before. It is easier to get fraudulent numbers and to use them to initiate transactions before fraud can actually be proven. Of course, you put yourself at an advantage if you are using a reliable bank identification number database. These services stay on top of credit card issuances and can tell in a hurry if the card is legitimate, often within seconds. The problem lies with not finding the right provider. Some, in an attempt to save on costs, cut back their coverage and currency, and if you are aligned with one of these organizations, then you may not be getting the information that is necessary to avoid a chargeback.
It pays to remain vigilant in the business world of the new age. As time goes on, crooks will only grow more advanced in how they attempt to attack your business. You owe it to your success and to the well being of your customers to fight back and implement prevention standards that are ahead of the game.