Online retailers should offer e-money as a payment option in order to stay safe from fraudsters, as the latest figures on retail crime suggest an increase in online fraud. The research from the 2013 British Retail Consortium (BRC) Retail Crime Survey reports that incidents of fraud are up 15% year on year with the majority of retail fraud committed online. Ukash offers online retailers a safe alternative to credit and debit card payments.
Considerable proportions of credit/
debit card fraud, were committed online
With credit and debit card fraud, chargeback’s are a major concern for online retailers. Stolen card details are used to make purchases and when the victim informs their bank of the unauthorised use the amount is ‘charged back’ to the retailer. Once the chargeback has been approved, the financial transaction is cancelled and the victim receives a refund, leaving the merchant out of pocket and with the goods already delivered.
“Tight payment security is vital to fight against increasing levels of fraud which could affect retailers’ profits, reputation and customer relationships. But the challenge is to create a safe and secure online selling process which doesn’t risk the retailer taking a financial hit,” says David Cox, Strategic Business Initiatives Manager, Ukash.
“As online fraud increases web retailers need to think smarter when it comes to the payment methods they offer. One size doesn’t fit all so offering e-money alternatives can protect retailers against chargebacks in higher risk transactions, such as with first time customers or with those profiled as being in fraud black spots,” continues Cox.
Fraud accounted for 41% of the total cost
of crime in 2012-13.
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