More Platforms, More Problems & Why Passwords Are Not Enough

2016 was a banner year for data breaches, with the highest levels to date and a 40 percent increase from the previous year. Yahoo was the victim of one billion account breaches, not to mention Oracle and Verizon as well. Fraudsters, once armed with consumer’ and business’ private information can either post, sell or use this data online which in turn escalates card-not-present fraud further.  Where passwords have been enough to protect consumers and merchants in the past, they are not strong enough to prevent the fraud of today’s day and age.

E-commerce merchants are located on multiple platforms such as websites and apps and are used on many devices from phones to tablets and computers. While a password provides convenience for customers by storing their preferences and personal information and most importantly their payment information, there are security issues involved in databasing that information. Fraudsters can easily hack databases and use the information to make fraudulent purchases in the best case scenario or sell the information online in the worst case. Customers using your website expect that you will keep their information secure when they create an account on your website and provide you with their personal data. It is essential that you, as a merchant, commit and take action to keep their information secure.

Additionally, the growth in online fraud has become a tremendous issue for card-not-present merchants, specifically those with shippable goods. Stolen credit card information can be used online to make fraudulent purchases, and when the charge is disputed it can cost merchants over $2 for every $1 of the fraudulent purchases due to restocking, shipping, and bank fees.  Merchants need to be able to protect themselves against fraudulent orders placed on their sites.  However, this comes with its own set of setbacks. Namely, that airtight verification systems are a hassle for customers and online competition is fierce, especially for common goods that can be purchased elsewhere with a less time-consuming process.

Fraud has become more complex and advanced than ever, and fraud solutions have to be incredibly advanced to combat breaches.  The right tools are ones that are highly effective, but also invisible to the consumer, and do not impair the shopping experience in the least. Fidelity offers two specific tools for card-not-present merchants to keep their customers’ information safe.

Storing Payment Preferences Securely

For merchants that process card-not-present transactions, whether on an e-commerce site or using a point-of-sale system or accounting software, Fidelity offers options to store the credit card information remotely. In the event of a data breach, the hackers will only be able to access the unique “token” that represents each customers’ payment information because Fidelity is the only one with access to the actual data. This method is called “tokenization” and ensures the security of your customers’ private information.

Intelligent Fraud Detection on Purchases

Fraudsters are smarter than ever nowadays and can mask their activities using a plethora of methods. Effective fraud tools need to be even more clever to combat these illegal activities. Our in-cart fraud protection runs each transaction through dozens of tests to ensure that legitimate purchases are approved and that fraudulent attempts are prevented.  All of this happens in-cart and in the background, without requiring any action on the customer’s part.

More platforms bring more problems in terms of security, but they also provide a tremendous opportunity to merchants. It is essential to develop not only a unified fraud prevention plan, but also seamless payment options. Fidelity offers acceptance of all major credit card types and next day funding, all of which can easily be implemented on a variety of platforms. Get in touch with us today to see what we can do to increase your business’ bottom line.