Recent news stated that 1 of 5 retailers in the United Kingdom is not taking online fraud seriously, according to a survey conducted by retail research company Martec. The results of its Retail Fraud Survey show that as much as 22% of respondents are unable to give a clear figure of their prevention costs. Most alarming is the fact that smaller online businesses might have been paying seven times more than they should in chargeback fees, according to estimations given by the same survey.
Unfortunately, similar surveys would conclude comparable results if conducted in other countries. The reality is that online merchants are not always aware of the extension and complexity of online fraud, neither are they aware of the amount of funds lost when their businesses are partially protected – or not protected at all!
Previous CashShield articles highlighted the importance of comprehensive fraud prevention as opposed to partial prevention solutions that tend to set up too many restrictions which hamper business growth in the long run. In this article, however, we would like to focus on three key areas that business managers can discuss with fraud protection providers when evaluating the wide array of benefits and costs of the solutions available in the market.
Monthly fee, set-up fee, maintenance fee…It is very important that your fraud protection provider is able to offer you clear and specific information on the fee structure, and whether your fees will be altered should your transaction volume change. Remember, these are only the “obvious” costs of fraud management, since verification does entail some other “hidden” costs that should not be overlooked when choosing a provider. You can access more information about the hidden and the true cost of verification here.
Just like any other improvement on your website or your business operations, implementing a fraud protection solution is an investment, and as such it should bring returns. Make sure your supplier can offer you figures from existing clients, preferably in the same industry as yours, so you can estimate how much you can benefit from this solution –and how long you must wait to experience the results.
3. More than simply another supplier
Make sure the company you choose understands your business model, your expansion plans and shares your corporate objectives. Fraud protection suppliers should make the road to business growth easier by removing uncertainties and keeping a constant flow of information about your fraud management system.
Online merchants can shortlist those fraud protection providers by their ability to give accurate answers to the questions above. Fraud management is an important aspect of your online business – one that directly affects your profitability and business growth. By entrusting your needs to a reliable and knowledgeable partner, you can focus on your business’ core competencies and do what you do best: make your business grow.