Fraud on eCommerce: What to Do?
Hi there! My name is David Gregoire, the founder of SnapShop.camera. Today I’m answering Stefano’s question about fraud on online sites.
This is not utopia right now. The thing is that you will have fraud on your website.
If you’re using Shopify, it’s a good thing to check the security level of the transaction when you go on your order panel.
But this doesn’t mean that the transaction will not be contested after by the credit card owner.
Actually, in my life, I have to say that we have lost maybe 95% of the chargebacks when I was at my other, very big e-commerce website before.
So, it takes a lot of energy to contest that, to prove the transaction, when you don’t have the credit card in your hand. You never had it and you cannot do any verifications because it could be like a real transaction.
The guy purchased your thing. The address was good. It was a real human behind that. And after that the client decides he doesn’t want the merchandise or he doesn’t want to pay so he does a chargeback and you will lose it.
You have to consider, in advance, that you will have fraud and include that in your pricing. And this is like the only thing you can really do.
There are some services online.
If you check fraud protection on Google, you will find services that will add an insurance against fraud on your website.
If it begins to be too big, maybe, you want to pay that. But if you are quite small, starting, then don’t pay much attention to it. Just include any potential loss in your pricing and try to move forward. That’s it. You will have fraud.
And even if you had a real brick-and-mortar store, you will have people stealing from you. So, that’s part of the game, part of making business.
David Gregoire, Founder of SnapShop.camera.
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