When expanding any business into the world of the internet, most people simply assume that because there are no physical items to be stolen or damaged, that it’s safer than a physical building. While sustaining physical damage to your products isn’t a problem when running a business online, it becomes dangerous for other reasons, mainly credit card fraud.
When you purchase something at a store and physically slide a credit card or pay with cash, that’s known as a secure payment. It’s secure because your payment, as well as the goods you’re purchasing, are both physically available. In addition, you can see right away whether or not the sale has gone through, and it’s difficult for anyone to steal information from a card that’s in your hand. But with card not present (CNP) transactions online, stealing information electronically is on the rise.
In 2014, credit card fraud losses amounted to a grand total of just over $16 billion, and in the next few years, that number is expected to increase to over $35 million. With so much fraud happening, making sure your business has a secure payment system is crucial to its safety and success.
You may think that credit card fraud only affects the people holding the card, but it can affect your business, too. One of the most problematic things that you need to be aware of is the chargeback process. If a customer is affected by fraud, their credit card company can request that you refund the total amount of the purchase to that customer. This is a process known as chargeback, and it can end up costing you a lot of money.
The more time you invest in maintaining secure payment systems for you customers, the safer from fraud you’ll be. Of all cases of credit card fraud. 12% make initial contact through a website with an unsecured payment system. Keeping your customers safe is keeping your business safe, so investing in safe payment options will keep you in the clear!
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