Preventing Fraud and False Declines During the Holidays

The coronavirus pandemic has had a singular influence over consumer shopping habits this year, with shutdown orders and safety concerns forcing many brick-and-mortar retailers to operate at reduced capacity or close their doors entirely. Ecommerce merchants have had to step up to meet a massive upswell in in demand, and with the holiday season upon us, the biggest surge may be about to hit.

This wave of new customers could mean big profits for online merchants—as long as their fraud screening tools don’t falsely flag them. What can merchants do to make sure that anti-fraud algorithms don’t turn away customers new to ecommerce shopping?

Fraud is a pernicious problem that carries many negative consequences for its victims, but the opposite problem—good customers mistakenly identified as fraudsters—can have financial consequences for merchants that are just as serious. Some analysts estimate that the revenue losses from false declines exceed that of fraud by a factor of 70. A false decline won’t lead to a downstream problem like chargebacks, but it can have a serious negative impact on your business.

Full Text:
https://www.chargebackgurus.com/blog/holiday-false-declines

©Chargeback Gurus 2021
Production: Emily Woodward
Narration: Sarah Rife