Online shopping scams continue to grow worldwide. This is especially vivid during sales-increase periods. So, you, as a merchant, should be well prepared to the fight high fraud volume during the holiday shopping season. What about chargeback insurance? Just read below to know.
According to Riskified, a technology company dedicated to helping customers to be a step ahead of online fraudsters, merchants muse be aware of mixed-cart fraud during the holiday shopping season.
This type of fraud happens when fraudsters purchase physical goods to be delivered to the victim’s actual address and then add digital gift cards to be sent to their own email address. In these cases, the physical goods order corresponds to normal patterns, so the order seems to be legit.
After the goods are approved, the cardholder receives goods he/she hasn’t ordered, and the fraudster receives the digital gift cards without having paid for them.
These days, gift cards are a huge business and account for over $95 billion in loads in the U.S. This number is expected to further grow in the years to come. Gift card fraud varies from 1% to 4% of revenue.
With all this in mind, shop around to find a true payment expert that can help you avoid fraud and chargebacks in the best possible way by charging the cheapest possible rates. With a reliable payment processor, you can get the best support concerning chargeback insurance, and not only.
Q2 of 2019 witnessed a 13.3% eCommerce sales growth in the U.S. During the same period in 2018, the sales went up by 3.2%. The rise in sales results in the growth of fraud. Let’s look at some important facts concerning fraud. As you may know, legitimate behavior is hard to figure out.
Legitimate holiday shopping behaviors that appear to be fraud include:
As you see, online shopping scams aren’t going to reduce or become less widespread. The rise in sales results in increased fraud, including mixed-cart fraud.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high-risk merchant account processor in the country that can best help merchants interested in chargeback insurance. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.
This post was published on 23/01/2020
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