When choosing a fraud verification solution, many merchants often forget that the verification process affects the company’s profitability. In fact, the verification process is part of the customer’s experience as they browse through the website and make purchases. Therefore, it should be as smooth as possible to keep up customer satisfaction and prevent cart abandonment halfway through the purchase. This is a real problem for merchants; research has shown that 70% of consumers in the United Kingdom abandon their online carts before checkout. Unfortunately for all merchants, this phenomenon takes place globally and affects all.
What causes customer satisfaction to fall?
Identify where a customer might interact with your fraud system at the point of checking out. Thereafter, generate a list of the most common worst-case scenarios, and cover the scenarios to prevent impact on customer satisfaction. Happier customers will contribute to a higher sale conversion and increased customer loyalty. After all, it is cheaper to retain an old customer than to recruit a new one!
These are the most common scenarios that can arise during checkout and verification:
1. Lack of preferred payment methods
Online merchants often allocate large marketing budgets to improve the web experience, analyzing traffic and implementing target campaigns. However, what happens if the customer is unable to find their preferred payment method on the website? Unfortunately, many customers would choose to abandon the purchase and seek alternative platforms of their preference. Therefore, failure to deploy a widely-used payment method could impact customer satisfaction and sales consequently. This could be even more significant for businesses with high cross-border sales volumes. Different markets support and prefer different methods, which is especially so in Europe and its tremendously fragmented payment arena.
Merchants often choose to opt out of certain payment methods due to the high risk of fraud. For instance, e-wallet accounts are easily subject to hacker attacks, increasing the risk of unauthorized transactions. The dark web is a trove of full credit card details, including CVV codes, allowing fraudsters to place legitimate looking orders. Given this, it is unsurprising that merchants avoid deploying certain payment methods despite the impact on sales.
2. Long verification queue
Navigation and checkout in most of the web stores are seamless, but it all comes down to nothing if the order needs to be manually verified. Manual verification is endorsed only when strictly necessary, but the number of manually-verified orders should be minimized as much as possible as it forces customers to wait for order confirmation.
3. False declines
Threat detection is different from fraud protection; it is important to understand the difference. Many orders containing suspicious attributes are rejected on the wrong assumption that these orders are fraudulent. According to CyberSource’s 9th Annual UK eCommerce Fraud Report, 4% of overall orders received by those merchants surveyed are rejected on suspicion of fraud. Some typical examples of suspicious attributes are anomalies between the shipping and the billing address or between the reported location and the IP address. As much as these attributes can be cause for concern, a wider analysis of these orders might reveal vital information that confirm these orders are genuine.
How can these scenarios be avoided?
Comprehensive fraud protection systems using a wide variety of verification tools have strong technical support that enables them to detect and block only those orders that are really fraudulent. Analyzing orders using a wide range of information is the cornerstone of fraud protection; these systems not only keep your business safe, they also increase the number of genuine orders accepted, leading to high customer satisfaction and low cart abandonment rate. Eventually, merchants will receive real and sustainable business growth. Additionally, fraud not only occurs, it also evolves rapidly. Merchants therefore need to update constantly their verification tools and fraud protection systems to stay ahead of ever-changing fraud schemes.
What CashShield can do for online merchants
CashShield is a comprehensive fraud management solution that scores the risk in every order coming to your web store using information from customer, payment, device and network. CashShield effectively filters out only really fraudulent orders, regardless of the payment method used by your customer. CashShield’s 200 automated verification tests ensures merchants approve the highest number of genuine orders, and allows merchants to deliver orders instantly, increasing customers’ satisfaction. Our ongoing Research and Development protects your business continuously against every-changing fraud schemes. CashShield offers merchants comprehensive and automated fraud protection, topped up with the market’s unique 100% Chargeback Protection that ensures real growth for your online business.