2011 eCommerce holiday sales are projected to hit a record-breaking $36.5 billion. While this is a boom to online merchants, the holiday season presents some serious fraud challenges. These challenges include a startling increase in credit card fraud and chargebacks. This results in a crippling volume of orders pending a manual review. Merchants need to focus on developing practices that identify basic fraudsters and decrease the number of orders that are sent to the manual review team.
25% of orders lose valuable margin as the cost of supporting a manual review team eats into profits.
To accommodate the increase in orders that need to be manually reviewed during the holiday season, most merchants will add temporary staff and require their permanent team to work more hours. Some merchants will simply review fewer orders and accept the additional fraud losses.
There is a better way.
Online merchants have significantly improved their margins, decreased their fraud rates, and nearly eliminated chargebacks by implementing TeleSign Telephone Verification and PhoneID as an additional layer for risky orders.
Here is how it works:
During the checkout process (or after an order is completed), the customer receives an automated call or SMS with a one-time PIN code that is entered into the website. This gives merchants a piece of traceable information and mitigates the number of orders that need to be manually reviewed. TeleSign also determines the type of phone that is provided to identify high-risk phone types such as pre-paid mobile and VOIP phones.
Merchants that use TeleSign have seen:
• Fraud rates drop from 12% to 2%
• 98% reduction lost revenue due to fraud
• 88% reduction in the cost of manual reviews
• 80% reduction in charge backs.
TeleSign’s Telephone Verification and PhoneID are based on a simple API that can be blocking fraud within hours. Integrate now and significantly increase your margins this holiday season.
To learn more give us a call at +1 310 740 9700+1 310 740 9700