As countries go into lockdown, shops are closing, forcing customers online. Delivery companies have pressure to deliver quickly, meaning that sometimes packages are left in vulnerable positions open to theft.
Whether a package is stolen or not, the number of refunds and chargeback requests increases. Since merchants have almost no means of verifying legitimate claims, they must honour the refund or risk losing the customer and future transactions.
Many businesses are on the brink of survival, so they are really backed into a corner.
Most current fraud prevention technologies use big data to determine shopping behaviours - for example, a new account making a large purchase or purchases made from suspicious locations.
However, at this time, this approach is troublesome for merchants. With the global coronavirus pandemic, many customers are shopping online for the first time. Christmas and the New Year means that these new online customers are spending a lot of money.
So, why is this a problem? The fraud prevention technology we described above is looking for new customers making large purchases. This means that merchants are at risk of declining genuine transactions, which would be disastrous for their bottom line.
Further exacerbating the problem is that many merchants have rushed into e-commerce to provide their services or products online in response to face-to-face trading restrictions. While this enables continued trading, many merchants have not added strong authentication processes and chargeback management software into their systems.
Merchants must respond to rising chargeback numbers, payment disputes, double-dipping, and friendly fraud to keep refund numbers down.
Chargeback management software from Payment Help minimises chargeback requests by interrupting user behaviour at the exact point in time where a chargeback or refund would be requested, reducing repayment costs for merchants.
They do this by allowing consumers to identify and verify purchases they have made but either do not recognise or have forgotten about.
Our software can also be integrated with various business management systems, learn more about the benefits of becoming a partner.