At One Payment, we love providing our readers with great information on preventing and decreasing fraud. E-commerce has become a big issue and loophole for criminals in terms of fraud, and this article will explain how fraud can be reduced by choosing the correct merchant service provider.
The Basics of E-commerce
With e-commerce, service providers process credit card transactions on behalf of other merchants. Think of the service providers who process these transactions as a third party of sorts. While this concept seems fine on the surface, it opens the door for fraudulent transactions to occur due to the lapses in security. The more entities that are involved, the higher the risk for fraudulent transactions to occur.
Illegal Activity for Processors
Unfortunately, processors have started accepting transactions that they shouldn’t be. Criminals have found loopholes with e-commerce, and they’re taking full advantage of it. E-commerce is quick and easy to set up, and merchants can accept transactions within hours of setting up. While this is great news for merchants, it allows criminals to have a quick and easy path to identity theft. Merchant providers have a hard time differentiating between legitimate transactions versus fraudulent transactions, and the issue isn’t caught until it is too late. In addition, security is extremely laid back compared to transactions that are completed in person, which explains why so many criminals are flocking towards this option.
While this problem will take a while to get a handle on, rest assured that merchant providers are aware of the issue. Clearly, there are changes that need to be made to improve security for merchants and consumers alike. Technology is not perfect, but we must all strive to stay one step ahead of the criminals to ensure safety for both the consumers and the merchants.