Payments Blog

Chargebacks, False Positives and Other Holiday Issues

There’s a lot going on around the holidays, especially for merchants. There’s often a certain revenue benchmark that merchants are trying to hit before the season ends and, on top of that, they need to ensure that all their consumers are satisfied with their products and, perhaps more importantly, their service, both online and in-store.

During this time of the year, merchants are focused on sales and maximizing revenue, so it’s easier to overlook some other crucial things, like fraud, false positive and chargeback prevention. But like clockwork, merchants often run into these same issues during and after every holiday season.

If they get caught up trying to reach certain revenue targets, a merchant could, conceivably, lose sight of these other important factors that could determine whether they reach their goals.

It’s important for merchants to sell as many products as possible during the holidays, but it’s even more vital to prevent fraud. For most merchants, one fraudulent attack could ruin their entire season. Even worse, after a cybercriminal uses stolen credentials to purchase products or services, the merchant will get hit with chargebacks, from consumers who notice the unfamiliar activity on their account.

While they’re an issue year-round, chargebacks become an even bigger problem around the holidaysAs they accrue chargebacks, merchants will lose more revenue to chargeback fees. Additionally, they could be at risk of losing their ability to accept credit cards.

In their attempts to prevent fraud and chargebacks, a lot of merchants implement systems that are too rigid, with pre-set rules. If a consumer changes any of their data fields during checkout, like their shipping address or their card information, the system may flag that change, and could decline that legitimate consumer. This occurrence, referred to as a false positive, can be even more damaging than a fraudulent transaction.

During the holidays, a lot of consumers send their gifts to addresses other than their billing address due to travel. If a merchant relies on a rigid fraud prevention system, however, a lot of these gifts may never get to their destination, because the transactions will be falsely declined.

Cardinal Consumer Authentication (CCA) can help solve this problem. By letting merchants craft their own rules from several different data fields, CCA effectively reduces fraud and false positives, while giving merchants enhanced flexibility. With One Connection to Cardinal, we can Drive your Digital Commerce.

Posted by CardinalCommerce

Welcome to the CardinalCommerce blog. Cardinal is a global leader in authenticating digital transactions, with One Connection to drive digital commerce. Our goal for this blog is to provide a platform that will inform and educate our Customers and partners on consumer authentication, payments, mobile commerce, solution design and big data.

Topics: Fraud, chargebacks, false postives, holiday

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