Best Practices for Preventing Fraud While Preserving the Customer Experience
Ecommerce fraud can be prevented while still preserving the all-important customer experience.
Understand which segments are higher-risk
Who is most likely to be a concern? What type of data can you feed into your fraud prevention algorithm that will flag those orders for a closer look?
Compare risk and revenue
For every fraud prevention tactic, evaluate how much of an inconvenience it will create for customers. They may be willing to provide additional information – within reason – if it means a safer shopping experience. Further, food and delivery ecommerce brands should review their current approval rates to get a clear picture of how well they’re balancing risk with revenue.
Get personal with customers
How well do you know your customers? The more food and delivery ecommerce brands track consumer shopping patterns and behavior, then the easier it will be to identify potential fraud.
Be wary of automatic filters
Ecommerce platforms have the best intentions to keep an online business protected from fraud, but blindly turning on filters as if every customer and every transaction is the same is a recipe for false declines. Be very cautious of automatic filters, especially when applying multiple filters, as they can either cancel each other out or double up to the point of declining good orders.
It’s easy to think that fraud filters will provide more peace of mind, but they’re more likely to turn away good customers.
Partner With a Trusted Fraud Protection Solution Provider
The most effective way to prevent fraud is to work with an expert partner that has the expertise and experience to identify, evaluate and prevent fraud from happening. For food and delivery brands, that partner should have a global view of fraud and understand the most current tactics used by fraudsters.