Over the past several years, different electronics products have become ingrained in our society. Today, it’s rare for consumers to make it through an entire day without checking their phone or logging onto their computer. This dependence on electronics products has benefited certain merchants that sell them, however, it has also attracted cybercriminals to their digital marketplaces.
Generally, electronics products are expensive and, because of that, these products are even more appealing to criminals. If a cybercriminal manages to fraudulently obtain an expensive electronics product, they can, in turn, sell that same product for a large sum.
Additionally, since the average order value in the electronics vertical is abnormally high, one fraudulent act can significantly harm an electronics merchant, and can cause irreparable damage to their bottom line. A small electronics merchant who is the victim of a fraudulent act on a large transaction will likely struggle to recoup the losses from that one fraudulent transaction. Not only will that merchant lose the value of the product but, they will also be forced to deal with accompanying chargeback fees.
If an electronics merchant pays $150 for a product and sells it for $500, they will make a good profit on that product alone. However, if a consumer files a chargeback on that product, the merchant will lose the $150 they paid for the product and the $500 because the consumer will be entitled to their money back. Additionally, the merchant must pay chargeback fees, which could be as much as $75. To recoup their losses from this one chargeback, a merchant would have to sell three of these products.
As you can see, for merchants to safely operate in this vertical, they need to secure every transaction, as just one fraudulent transaction could derail them for good. By working with Cardinal, electronics merchants can effectively deter fraudsters, secure their digital marketplaces and maximize their revenue. Cardinal Consumer Authentication (CCA) will ensure that all legitimate consumers of a given merchant can conduct frictionless transactions, while simultaneously keeping the cybercriminals from inflicting serious damage
Today, false positives are a huge issue for merchants, so it’s important for them to ensure that their legitimate consumers can shop with ease. While it’s important to prevent fraud, it’s equally, if not more, important to prevent false positives. One Connection to Cardinal will Drive Digital Commerce.
For more information about the electronics vertical, and the fraud risks associated with it, download our whitepaper How to Eliminate Fraud and Authorize More Orders in High-Risk Industries.