With retail fraud exceeding $30 billion and international merchants experiencing more than double the fraud of domestic-only remote channels, Payscout emphasizes the critical need for effective online fraud protection.
Los Angeles, CA (PRWEB) January 03, 2017
According to data by Radial, cross-border ecommerce is proven to be much more susceptible to fraud than domestic ecommerce. The data, which covers over 100 clients in eight different verticals and over 100 million transactions, showed that cross-order ecommerce was riskier.(1) LexisNexis data confirms that international online/mobile channels suffer 2.5 times more successful fraud than domestic-only remote channels.(2) Cleveland Brown, CEO of leading global payment processing provider Payscout, Inc., said these findings underscore the importance of risk analysis and fraud management for global ecommerce merchants.
According to Business Insider, U.S. retailers lost roughly $32 billion to fraud in 2014—a 39% increase over the $23 billion in fraud losses the prior year.(3) LexisNexis reports that international merchants with ecommerce/mcommerce transactions have the highest fraud costs as a percentage of annual revenues; their costs are nearly 22% higher than the average multi-channel merchant, and 85% higher than international merchants that operate physical stores only.(4)
“While fraud remains an ongoing challenge for all retailers, these findings suggest that cross-border merchants should be particularly diligent in their efforts to combat fraud—both to prevent financial losses and to reassure consumers their data is secure,” said Brown. “This means addressing fraud on multiple fronts and using layered solutions.”
International merchants contend with several types of fraud; those with e/mcommerce channels attributed 30% of their losses to friendly fraud, 30% to lost or stolen merchandise, 22% to identity theft and 17% to fraudulent requests for return/refund.(4) Retailers also have to protect their customers’ information from cyber-attacks and data breaches, and they need to avoid declining legitimate transactions on suspicion of fraud. Among large cross-border merchants, 31% of declined transactions turned out to be false positives.(4)
The good news is that multi-layered fraud solutions have the potential to reduce false positives from roughly 1 in 3 to 1 in 5, and to cut the average monthly number of successful fraud attempts by more than half.(4) Brown notes that international merchants can mitigate their fraud risk by starting with a secure payment system and building on that foundation with comprehensive online fraud protection. By providing global payment solutions for merchants in all risk verticals, Payscout has built a best-in-class suite of fraud protection tools that can support any global entrepreneur.
“Effective fraud management is every bit as important to a web-based business’ success as transaction and payment processing,” Brown explained. “That’s why in addition to providing ecommerce merchants with a robust, flexible and secure payment infrastructure, Payscout assists them with advanced fraud protection solutions.”
Payscout’s managed risk analysts support thousands of clients on six continents with a range of proven tools and strategies, from automated fraud screening and manual reviews to risk management assessments and performance audits. “We maintain a global knowledge network that helps identify new fraud trends before they impact our clients’ businesses, ultimately enabling ecommerce merchants to accept more good orders and reduce their risk of fraud,” concluded Brown.
About Payscout, Inc.:
“Payscout Supports the Entrepreneurial Dream One Transaction at a Time.”
Payscout is a global payment processing provider covering six continents by connecting merchants and consumers via credit, debit, ATM and alternative payment networks. What differentiates Payscout is its mission “to support the entrepreneurial dream one transaction at a time.” Payscout achieves this by being a thought leader in the payments industry. Its “Go Global Now” technology platform gives merchants instant access to 100+ countries, billions of consumers and trillions of dollars. Payscout offers payment processing solutions for brick-and-mortar and eCommerce transactions, and has earned acclaim as a new-generation provider of merchant banking services, specializing in online/eCommerce retailers with a predominant proportion of card-not-present (CNP) transactions; it is one of the few providers to deliver a true global payment solution that encompasses all merchant risk verticals. Customers can access Payscout’s credit card processing services via a state-of-the-art, web-based user portal and through direct interactions with highly-trained experts. In addition to supporting thousands of clients across a multitude of industries and all 50 American states, Payscout maintains global partnerships with VISA USA, Bank of America Merchant Services, VISA Europe, VISA Latin America, VISA Asia Pacific, MasterCard Worldwide, China Union Pay, Deutsche Bank, First Data and Payscout Brazil. Payscout was recognized as one of America’s fastest-growing privately-held companies in 2014, 2015, and 2016, ranking #2,416 in 2014, #434 in 2015, and #383 in 2016 on Inc. Magazine’s Inc. 500/5000 list. Within the financial services industry, Payscout placed #140 in 2014 and #24 in 2015. For more information, visit http://www.payscout.com.
1. Rohall, PJ, and Darnell Wilkins. “Blurred Lines: Managing Cross-Border E-Commerce Fraud.” Total Retail. N.p., 29 Aug. 2016. Web. 27 Dec. 2016.
2. LexisNexis. Fraud Hits International Online/Mobile Channels Even More Than Domestic-Only; May 2016.
3. BI Intelligence. “Security Issues Are a Barrier to e-Commerce Adoption”; Business Insider; November 21, 2016.
4. LexisNexis. 2016 LexisNexis True Cost of Fraud Study; May 2016.
For the original version on PRWeb visit: http://www.prweb.com/releases/2016/12/prweb13951442.htm