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The information age has brought countless changes to the way business works across all industries, but not all the changes have been positive. For merchants, new technology has meant opportunities like eCommerce that open up their pool of potential customers to include people they never thought they could sell to. It also meant better, faster inventory management and financial tracking, which made running a business a lot easier. Unfortunately, these new forms of technology have also led to increased rates of fraud, and part of being a merchant today is understanding how to protect a business from these new crimes.
Chargeback Abuse and Online Shopping
One of the drawbacks to shopping online is the additional risk involved in shipping items. While parcel carriers are very good at what they do under most circumstances, each of the major options for shipping handles tens to hundreds of thousands of packages every week. That means even with a 99% satisfaction rate, there are hundreds of lost items. In many cases, the carrier gets it sorted out. In many more, the retailer can work with the customer to get them what they need. Both of these solutions require patience, though, and some customers simply file for a chargeback with the credit card company they used for payment.
This abuse of the system is fraudulent and results in losses for the merchant, while the customer often receives the item after a short delay despite having gotten money back. Chargeback protection for merchants is vital to stopping this abuse process and verifying that chargebacks are only being used to reverse charges that were unauthorized or fraudulent in the first place.
Phishing and On-Site Fraud
Another hazard to be aware of is the rise in fraudsters using your infrastructure or brand name to capture credit card numbers they can then sell on the stolen card market. Chargeback protection from a company like Ethoca needs to be balanced with both a careful eye on whether your brand name is being appropriated by con artists posing as your company. You also need to be aware of the possibility of tampering with your equipment on-site. That’s where adding in maintenance and inspection protocols can really help.
Adopting new tech tools means being aware of how they could be misused. It’s just as true for merchants as for business owners in any other industry. As you expand and upgrade your tech tools, make sure you’re following up with the security measures you need to keep your company safe.