Payments Blog

Cyber Monday ONE WEEK AWAY!


While some of us are preparing to host the family dinner for Thanksgiving, many of us are getting our credit cards ready for Black Friday and Cyber Monday. Over the past few years, we have seen more consumers shy away from getting up at 3 a.m. or camping out in tents, when the same or better deals are available online. Since we now live in a smartphone and tablet world, retailers have taken to the internet to offer their best deals.

This should come as no surprise since last year’s Cyber Monday sales hit $2.29 billion, according to the Adobe Digital Index. That was a 26% increase from the previous year, and industry professionals project similar increases this year. The two most popular hour blocks for online shopping on Cyber Monday were between 11:00 a.m. and 12:00 p.m. ($135 million) and 8:00 p.m. to 9:00 p.m. ($150 million).  With the high buying traffic from consumers comes the increased activity from fraudsters, because this is their holiday shopping (stealing) season as well.

Why Do Fraudsters Thrive?

The fraudsters like to hide in the crowd. When stores are full of consumers it is far easier to steal. The security personnel and monitoring systems are taxed as wall-to-wall buyers can camouflage the crooks within the masses. The confusion, long check-out lines, returns, exchanges and the sheer volume of activity is their fertile ground.

The same for online: the sales volume, gifting (sending to multiple addresses), returns, exchanges and the like, stress the best merchant order management and fraud mitigation systems. There are too many orders that should be referred for follow-up calls or other order validation measures. Merchants are faced with the dilemma of loosening up their screening criteria or risk unwanted sales insults or false positives. 

That is why Cardinal Consumer Authentication (CCA) works. First, it actually helps improve the conversion or yield of sales orders (more sales). Second it shifts the liability for fraud to the Issuing banks so their systems can quickly and seamlessly validate the consumer. It also shifts some of the merchant’s internal burden of “double or triple checking” valid orders for shipment. Most importantly, we tune authentication so that the consumer has the best experience. 

In real-time, CCA compares what the banks know about their Customers and what merchants understand about their consumers. The result is more sales, improved margins (lower fraud and interchange savings) and the best consumer experience.

This conversation shouldn’t be limited to “Cyber Monday,” because one of the market trends now is “Cyber Week.” In reality, it is the holiday shopping season which lasts anywhere from 30 to 45 days. This is where businesses offer Black Friday-like deals for the entire season. This also creates a greater window and opportunity for fraud.

What is the Dollar Implication for My Business?

An important fact to understand is high sales volume is the fraudster’s friend. According to Internet Retailer, most card-not-present fraud happens between noon and 1:00 p.m., at the peak of sales volume. Today, more merchants are using CCA, and that leaves those that are not more vulnerable, according to the CardinalCommerce/The Fraud Practice’s 2014 Annual Consumer Authentication Survey. The Fraud Practice found that fraudulent transactions on a smartphone and tablet on Black Friday last year were $190 and $210, respectively.

What You Can Do to Protect Yourself

Contact us to learn more about Cardinal Consumer Authentication, not only for Cyber Monday, but the other 364 days of the year. At Cardinal, we have professionals who are ready to help. 


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Posted by Michael Roche

Michael Roche is the Vice President of Consumer Authentication where he focuses on developing and strengthening relationships with enterprise partners in order to provide them with eCommerce solutions tailored to their needs.Mike is our Consumer Authentication expert. He is instrumental in soliciting feedback from Customers to improve current products and shape new product development.

Mike has been with CardinalCommerce since 2003, serving in many different capacities throughout his tenure. He is the founding member of the sales force and merchant support teams, where he has had the opportunity to contribute and lead the development of all of Cardinal’s Consumer Authentication programs, while working very closely with both Visa and MasterCard on their design and deployment of 3-D Secure. Mike is a member of The Payments Committee with the Merchant Risk Council (MRC) and is active with other industry organizations such as the Direct Response Forum, Electronic Transaction Association, Secure Remote Payments Council, and Cardholder Not Present Forum. He is frequently invited to speak at industry events on various payments- and fraud-related topics, in the U.S. and internationally.

Mike holds two Bachelor of Arts degrees with distinction from John Carroll University and is pursuing his MBA from Case Western Reserve University. In his free time, Mike enjoys fishing on Lake Erie, is a history fanatic and also is a published author. His greatest pride and accomplishments are his daughter Theodora, his son Macklin and beautiful wife Rebecca.

Find me on: LinkedIn

Nov 24, 2014 8:30:00 AM

Topics: Consumer Authentication, CardinalCommerce, Cyber Monday

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