Merchant-issuer collaboration is essential for effectively preventing true and friendly fraud chargebacks. Despite this need, there is a significant lack of communication between these parties, both of which could benefit from sharing order information. As the card-not-present (CNP) landscape becomes more complex and fraud inundates the sales channels at alarming rates, leveraging collaboration and information sharing is the one thing that can keep merchants and issuers one step ahead of fraud.
Here is what the experts are saying:
- Collaboration is now more important than ever. EMV has put CNP merchants in a vulnerable position as fraud migrates to online channels. Friendly fraud is also on the rise, prompting e-commerce merchants to understand how digital shoplifting can impact their bottom line. By combining and layering fraud prevention tools, merchants can combat evolving fraudsters and keep friendly fraud at bay. The most effective approach features merchant-issuer collaboration to fight fraud and chargebacks and save both parties millions of dollars in unnecessary chargeback costs, operational expenses, and lost customers due to poor service experiences.
- Collaboration means stopping fraud faster. Issuers know when fraud happens right away, but the power to stop fraud lies in the hands of the merchant—when armed with the right data. In some cases, merchants actually will encounter fraud first, though they face their own bias in thinking legitimate transactions are fraudulent. This can negatively impact profits and customer experience. By working together and sharing insights, merchants and issuers can stop fraud faster without hindering legitimate sales or harming customer service
- Collaboration puts a target on friendly fraud’s back. Merchant-issuer collaboration, ideally through a real-time platform, can help all parties identify and reduce true fraud and friendly fraud chargebacks. By sharing purchase details between merchants and issuers, the issuer can also share this information with the cardholder upon inquiry to legitimise and confirm the sale. This helps reduce instances of fraud and chargebacks, where the cardholder does not recognise the charge or is seeking to fraudulently avoid paying for the item or service.
The desire for faster payments has proliferated, as have more instances of fraud. When merchants and issuers work together through data and insight sharing, cardholder confusion is eliminated and friendly fraud is stopped in its tracks. The CNP landscape forecast continues to be rocky, but utilising a collaboration platform can help merchants gain solid footing to fight fraud and boost profits.
Verifi’s fraud prevention solution, Order Insight, provides seamless fraud prevention and merchant-issuer collaboration and data sharing so you can protect your revenue streams and process payments more securely.
Contact us to find out how to guard against online payments fraud and expensive chargebacks.