When selecting the best fraud solution, many factors come into play. We’ve compiled the questions you should ask to make sure you get the right fit.
How Well Does the Solution Balance CX, UX and Fraud Protection?
Customers can shop anywhere, and they know it. So, the customer experience (CX) and user experience (UX) of your ecommerce store are incredibly important.
In fact, 80% of customers say if a website is hard to navigate, they leave and go straight to a competitor’s site. Your fraud protection solution should make it easier for customers to purchase from you—that means speedy approvals where possible and few to no false declines.
When considering a solution, here are questions to ask about CX and UX:
- Does the solution require updates to your website?
- How do those updates impact the customer experience?
- Does the solution approve/decline orders on its own or send them to you for the final decision?
- Will you be kept informed about declined orders and why they were declined?
- What skills or training will you need to have in-house for this solution to work?
WEBINAR ON DEMAND:
5 Steps To Turn Your Customer Service, CX and Fraud Prevention Into Sales Generators
watch nowHow Easy Is the Integration Process?
The best fraud protection solution will work seamlessly with your existing ecommerce platform and integrate with limited steps. At ClearSale, most of our integrations are plug-ins; several of our ecommerce platform integrations can be completed in three steps.
When considering a solution, here are questions to ask about integration:
- How long does the implementation process take?
- What level of expertise do we need to have in-house to get this solution integrated?
- What technical support is available to us if things go wrong?
Keep Geography in Mind When Looking at Integrations
When it comes to chargebacks — or any kind of fraud — it’s important to remember not all countries operate in the same way. The banking systems in some countries, such as many LATAM countries, operate with fewer checks and balances.
As you’re narrowing down your fraud protection options, ask whether those providers integrate with solutions that are tailored toward the market (or markets) in which you’ll be operating.
For example, ClearSale partnered with ecommerce company VTEX, to offer a two-step authentication process that mimics the type of authentication you find in the U.S. and other countries. As a result, ecommerce businesses in LATAM countries can significantly reduce their fraud risk.
How Accurately Does the Solution Detect Fraud?
If your fraud protection solution is too rigid, you run the risk of declining valid transactions.
PRO TIP: Ask vendors what mechanisms they use to ensure accuracy and reduce the risk of false declines
When considering the accuracy of a solution, ask these questions:
- How are the models trained for accuracy?
- How quickly is information about new fraud trends integrated into their processes?
- How do they reduce the risk of false declines?
- What is the typical approval rate among its customers?
For every $1 in losses due to credit card fraud, businesses lose $13 to false declines.
40% of US customers will refuse to shop with a company after a false decline.
Does the Solution Protect You From Chargebacks?
You now know how important it is to avoid chargebacks: They are the single biggest threat to your small ecommerce business. Too many chargebacks will put your business in jeopardy of paying high penalties which can drain your profits quickly.
Many fraud solutions only address CNP fraud and don’t have the capability or expertise to prevent ATO, chargeback and friendly fraud. All these types of fraud can lead your business down the path to high chargeback rates. And what about chargeback protection, chargeback insurance and chargeback alerts?
When considering how a solution addresses chargebacks, ask these questions:
- How does this solution protect you from chargebacks?
- How much in-house work do you need to do to manage chargebacks?
- Does this solution handle chargeback disputes on your behalf?
- Does the solution offer chargeback protection or a guarantee? How does it work?
- What types of fraud does the solution detect?
- How is questionable fraud handled?
- Does the solution also assist with investigation of/response to chargebacks?
Related Reading
We’re excited to now offer our clients end-to-end chargeback services, helping you prevent and respond to chargebacks! Learn more about our acquisition of ChargebackOps and what it means for you!
read moreRelated Reading
Can You Stop All Chargebacks? Chargeback Protection Versus Chargeback Guarantee
read moreIs Your Business and Customer Data Safe?
Data breaches are an ever-present danger. When giving a fraud management solution access to your customers’ private data, you want to ensure they’ll guard it carefully.
When considering data safety, ask these questions:
- Are they PCI-DSS compliant?
- Do they have external penetration tests done? How often?
- How is their solution/application hosted? Local? Remotely? The cloud?
Reminder: By making sure your customers’ data is protected, you’ll be protecting yourself and other businesses from the increase in CNP fraud that tends to follow data breaches.
What Fraud Solution Costs Are Involved?
A fraud solution needs to give you the best return on investment. Some “bargain” solutions may offer none of the features you truly need, making them no bargain at all.
At the same time, other solutions offer more bells and whistles than you’ll ever use … and will charge you a small fortune for them.
When considering costs, ask these questions:
- Do they charge monthly management/support fees?
- What is the estimated cost per transaction? How will this change as you grow?
- What are the contract terms, and are there any fees outside of the contract?
You Can Prevent Ecommerce Fraud & Grow Your Business
As an small ecommerce business, you can’t ignore fraud. It’s an exponentially growing concern. And the stakes are high:
- Too much fraud will trigger chargebacks that siphon away your profits.
- Too many chargebacks will make payment processors question your business relationship and charge higher fees.
- Too strict fraud rules will decline valid transactions and turn away loyal customers.
You have a lot to consider when choosing a fraud protection solution, and it has to work with your business to keep you on the path of success.
Now that you’re much more informed about ecommerce fraud, you have a better chance of make a choice that will protect your business from fraud, save you time and money and keep your customers happy, so they’ll come back to you again and again.