You’ve probably heard about online payment scams and schemes, but have you ever wondered just how widespread they are? According to recent research, payment fraud affects one out of every 67 transactions, and the rate of growth in these crimes has been increasing over the past years.
The fact is payment processing is the lifeline of e-commerce and mobile commerce, but it’s also a point of vulnerability that can lead to tremendous financial losses if merchants don’t take adequate measures to protect their businesses.
Payment processing has always been an attractive target for fraudsters, and although the nature of payment fraud has changed over time, the problem remains persistent in the digital age.
This guide explains Payments Risk Management and Payment Fraud Protection – Prevention.
What is a Payment Risk?
The electronic payment industry faces several security threats that threaten payments and can be very damaging. Payments risk management will safeguard against theft and fraud resulting from compromised payment credentials, malicious insiders, unauthorized transactions, and other threats.
This step helps increase revenue while lowering losses stemming from financial crimes. It involves protecting merchants and consumers alike. You can ensure payments are secure and safe for both merchants and customers by taking certain measures.
Risk Management in Payments
Online payments are particularly susceptible to a variety of different risk factors. And payment processing fraud prevention is critical, especially as it’s estimated that over $1 trillion of transactions are processed annually online.
It’s vital for financial institutions and merchants alike to understand how best to mitigate online payment risks and ensure their payment processing fraud prevention is effectively working. For example, a study from Business Insider shows businesses with chip-enabled EMV terminals had an 80% lower risk of being breached than those without them.
In short, there are several payment risks out there; but armed with AcuityTec’s effective payment protection, you can feel secure.
Payment Fraud Protection – Prevention Tips
At a high level, payment fraud protection, in a nutshell, means making sure you only accept Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance or payment from safe service providers like Stripe or PayPal.
Here are a few summaries we recommend for payment fraud protection: While these measures may seem intimidating, they ultimately boil down to three things:
- Be vigilant about payments coming from unverified sources.
- Be cautious about accepting payments through new payment methods (or old ones that appear out of place).
- Don’t rely on just one type of fraud defense.
With these payment fraud protection tips in mind, you should be able to focus on what matters most, running your business well while AcuityTec supports your business.
Technology & Automation Help Risk Teams Scale
One of the challenges of managing fraud at a payments company is keeping up with payments technology and new payment types. Payment’s fraud moves quickly, and to keep pace with changing fraudsters, you have to embrace automation.
If your risk team is already overwhelmed by manual tasks, or you can’t find enough qualified staff, look for ways to use technology and automation as much as possible. This could be anything from leveraging AI tools that automate data analysis to automating parts of your workflow using automated email tools.
Automation doesn’t just help teams scale; it frees them up to focus on higher-level strategy. Instead of spending hours analyzing data each week, analysts can find trends and anomalies that might signal a potential fraud ring operating across different payment methods or geographies with automation done well.
Finding these fraud rings will make your job easier because once you know what it looks like, every similar transaction will give you a red flag when it appears in your system. This means more work for fewer people.
It may sound counterintuitive, but automation allows human risk specialists to spend less time wrestling with spreadsheets and more time thinking about how best to respond to specific attacks from online criminals.
A Proper Payment Gateway Is Key
To prevent identity theft and false charges by unscrupulous users, it’s important to partner with a payment gateway that ensures secure processing. Avoid payments fraud by partnering AcuityTec, a company that understands e-commerce best practices.
It’s important to ensure that your business is protected regarding online payment risk management and fraud prevention to maximize your revenue and maintain customer trust. In addition to payment protection, businesses must keep abreast of policy changes and new forms of security, or they could end up being vulnerable.
With effective payment fraud protection in place, you can protect yourself from transaction fraud without sacrificing usability or convenience for customers. A good payment risk management platform will safeguard you against suspicious payments and other risks of handling sensitive information.
Payment data breaches pose a major threat to consumers’ bank accounts and identities. Companies can safeguard sensitive information by using encrypted technology while reducing potential losses due to fraud or chargebacks.
Remember: technology is only as strong as its weakest link; if any single piece of your payment infrastructure isn't built for security, all your payments could be at risk.
What You Need to Do
There’s a lot of jargon around payments security; things like chargebacks, interchange rates, and payment card industry (PCI) compliance. Your customers are most concerned with preventing payment fraud but have no idea what that means or how to do it.
You can help them by explaining payments fraud prevention in plain language, sharing information about emerging payment methods (think mobile wallets), and providing resources they can use to educate themselves on any payment-processing issues they may face in their day-to-day business.
But most importantly, don’t scare them into paying more than they need to, give your customers simple ways to protect themselves and ensure you employ the right technology. That will create better experiences for both you and your customers.
Get Peace of Mind with AcuityTec
Making sure you avoid any payment processing risks is one of our main goals at AcuityTec. We’ve got tips to help you ensure that your customer payments are protected from common payment processing risks.
If you’d like to explore payment fraud protection and payment processing fraud prevention, we’ll be happy to discuss them. The key is awareness; if something smells fishy, back away! We hope that our risk management expertise will help you realize a problem and respond when there is one.
Sign up for a free demo today to learn more about our Payment Risk Management solution.
For more information about our solutions and services, visit our website or chat with our Risk Management professionals: www.acuitytec.com, email us at firstname.lastname@example.org or call us at +1-866-504-2170 for more information.