Dropship Tips: Minimizing Ecommerce Fraud in Your Home Business
Most of the time, when someone thinks of fraud in conjunction wit ecommerce, it’s from the consumer’s view point; but fraud is a problem for ecommerce merchants as well and you might appreciate a few tips to minimize the problem in your home dropship
If you talk to a few successful ecommerce merchants, they are liable to tell you that they have thrown in the towel on preventing fraud and are intent on simply minimizing it and containi9ng the damage as best they can.
This is a sad state of affairs, but the grim truth is that every time some new method of stopping hackers and internet fraud comes along, there’s a crook with a way of beating it.
The best thing you can do, as a dropship ecommerce business person, is to get proactive about minimizing fraud. Here are a few tips that should help keep the criminals at bay as much as possible:
- Be choosy about your payment processor. Don’t just go with the cheapest rates and monthly costs. Instead, choose a payment processor who works actively to provide you with risk management support and keep you up to date on specific ecommerce fraud risks and liabilities, so that you can try to stay one step ahead of the crooks.
- Make sure you have a good fraud screening process in place that will automatically recognize suspicious characteristics. These include multiple shipping addresses used by single customer, international orders, extremely large orders, payments with credit cards that have similar numbers, multiple orders on a single credit or debit card within quick succession and more. Your fraud detection process should be programmed to flag for review any suspicious characteristics.
- These two Credit Card Associations---Verified by Visa and MasterCard Secure Code---use a personal security code that, if the purchaser cannot verify accurately, halts the transaction in its tracks. In most cases, if you use these two security features, you will not be liable for charge backs that are fraud related.
- Create and maintain a “fraud file” in which fraudulent transactions are recorded and all new transactions compared to these. If there is a match---the transaction is declined.
- One of the most critical things you can do to prevent ecommerce fraud in your home dropship business is to achieve and maintain PCI compliance. The Payment Card Industry Data Security Standards are security management, policies, procedures, network architecture, software design and other protective measures that are intended to help organizations proactively protect customer account data. This compliance is mandatory in your own best interests to make sure your dropship business meets the industry data security requirements
Use these tips and research to find other ways to minimize ecommerce fraud. Remember that fraud eats up your profits!
Your dropship home business will be much safer and secure if you are aware of the fraud problem and make a conscious effort to stay up to date on ways to contain the damage, to keep your business as safe as it can possibly be.