Sell safely online.
With the Internet becoming an ever more popular place to shop, we’re looking at ways to make that experience as safe as possible. In last months issue we looked at points to note to make it safer for you when you purchase items on line. This month we look at how to make the selling process safer.
Taking the step to sell online is a big decision for most companies. Cost is usually the biggest factor - although getting a professional and reliable web-based shop is, by far, the cheapest way to get a 24/7 presence - and security the next.
In addition to a website, you’ll need an online merchant account and a payment gateway before you can sell online. The merchant account allows you to get the cash into your business and the payment gateway manages the card verification process. Some services like Paypal offer an integrated account but fees can be higher than separate accounts so you’ll need to look at your product ‘ticket prices’ and the number of transaction and then work out the best arrangement for your business.
For the vast majority of businesses, selling safely online means reducing your risk of taking a payment from a fraudulent (generally stolen) credit card. If you are a very large company that has thousands of client records saved on your severs, you will also need to take precautions against identity theft as personal details are of great value to online fraudsters.
A purchase fraud against a vendor invariably involves using a stolen credit card to get a product shipped to the fraudster for them to then subsequently on-sell for cash. The vendor will, at some point, need to refund the fraudulent transaction and will have already shipped the product, therefore losing out on the cost of the shipped product.
Knowing the type of fraud you can expect can help you take the appropriate precautions for your business.
The first stage is to correctly set up your payment gateway to reduce the risk of accepting fraudulent cards. In general, the tighter the security checks you specify, the lower your risk of getting a fraudulent transaction. However, the tightest levels can also risk you rejecting valid cards and losing a sale. The biggest issue here is 3D secure. Payment gateways recommend that this protection is enabled but few customers either have this enabled or can remember their password.
When you have received a sale, the most important factor in protecting you business is to be vigilant. If it’s only one person running your website, this is relatively simple, if it’s a team, make sure that they are all trained to notice the obvious signs and to be wary of strange looking orders. The top points to look out for are:
Buyer location. Some Payment gateways identify the physical location of the buyer at the point the transaction was completed, often referred to as ‘IP address location’. If this is not the UK and you are only shipping to the UK, then beware the transaction.
Delivery and billing address: Fraudsters will not get a product shipped to a card holders home so if these addresses are different, there maybe an issue (there may also be legitimate reasons for this such as shipping to a second home).
Unusual order. If an order is an unusual mix of products or sale value, think before you ship.
If you do suspect that a transaction is fraudulent, don’t panic; You’re very unlikely to lose anything until a product is shipped. Contact the card issuer to see if the card has been reported stolen and also your payment gateway provider to check if there have been any other occurrences of the card being fraudulently used.
Ultimately, selling online need not be any more open to fraud than selling through a traditional shop. Remain vigilant and aware and keep up-to-date with notices provided by the banks and police. If you are ever in doubt, ask advice.
Labels: ecommerce
With the Internet becoming an ever more popular place to shop, we’re looking at ways to make that experience as safe as possible. In last months issue we looked at points to note to make it safer for you when you purchase items on line. This month we look at how to make the selling process safer.
Taking the step to sell online is a big decision for most companies. Cost is usually the biggest factor - although getting a professional and reliable web-based shop is, by far, the cheapest way to get a 24/7 presence - and security the next.
In addition to a website, you’ll need an online merchant account and a payment gateway before you can sell online. The merchant account allows you to get the cash into your business and the payment gateway manages the card verification process. Some services like Paypal offer an integrated account but fees can be higher than separate accounts so you’ll need to look at your product ‘ticket prices’ and the number of transaction and then work out the best arrangement for your business.
For the vast majority of businesses, selling safely online means reducing your risk of taking a payment from a fraudulent (generally stolen) credit card. If you are a very large company that has thousands of client records saved on your severs, you will also need to take precautions against identity theft as personal details are of great value to online fraudsters.
A purchase fraud against a vendor invariably involves using a stolen credit card to get a product shipped to the fraudster for them to then subsequently on-sell for cash. The vendor will, at some point, need to refund the fraudulent transaction and will have already shipped the product, therefore losing out on the cost of the shipped product.
Knowing the type of fraud you can expect can help you take the appropriate precautions for your business.
The first stage is to correctly set up your payment gateway to reduce the risk of accepting fraudulent cards. In general, the tighter the security checks you specify, the lower your risk of getting a fraudulent transaction. However, the tightest levels can also risk you rejecting valid cards and losing a sale. The biggest issue here is 3D secure. Payment gateways recommend that this protection is enabled but few customers either have this enabled or can remember their password.
When you have received a sale, the most important factor in protecting you business is to be vigilant. If it’s only one person running your website, this is relatively simple, if it’s a team, make sure that they are all trained to notice the obvious signs and to be wary of strange looking orders. The top points to look out for are:
Buyer location. Some Payment gateways identify the physical location of the buyer at the point the transaction was completed, often referred to as ‘IP address location’. If this is not the UK and you are only shipping to the UK, then beware the transaction.
Delivery and billing address: Fraudsters will not get a product shipped to a card holders home so if these addresses are different, there maybe an issue (there may also be legitimate reasons for this such as shipping to a second home).
Unusual order. If an order is an unusual mix of products or sale value, think before you ship.
If you do suspect that a transaction is fraudulent, don’t panic; You’re very unlikely to lose anything until a product is shipped. Contact the card issuer to see if the card has been reported stolen and also your payment gateway provider to check if there have been any other occurrences of the card being fraudulently used.
Ultimately, selling online need not be any more open to fraud than selling through a traditional shop. Remain vigilant and aware and keep up-to-date with notices provided by the banks and police. If you are ever in doubt, ask advice.
Labels: ecommerce
posted by Andy @ 15:02
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