Friendly fraud, which is also known as first-party fraud, is a growing problem worldwide. With consumers processing more transactions online, fraudsters are more often targeting them. This creates more problems for merchants. Thankfully, payment experts like Best Payment Providers can help you fight fraud successfully.
Growing Online Sales & Fraud: Best Payment Providers
COVID-19 has dramatically accelerated the transition to the online space. Sales are rapidly shifting from physical to online stores. Global retail eCommerce sales increased by 27.6% in 2020, according to eMarketer. As a result, the worldwide total reached $4.28 trillion. The growth was largely driven by COVID-19.
Unfortunately, fraud isn’t going to disappear. Moreover, it’s evolving. E.g., the Global Gift Cards Market Survey 2021 has revealed that in 2020, the gift cards market size made up $295,210 million in the U.S. alone. It’s projected to reach $440,460 million by 2027.
This year, the National Retail Federation (NRF) anticipates that 11-13% of holiday purchases will be returned after the new year. Did you know that false declines cost U.S. merchants almost $34 in lost sales for every $1 in fraud that’s prevented?
With the fraud threat growing for merchants, it’s more vital than ever to stop any suspicious activity before it leads to a dispute. This is how you can prevent chargebacks and avoid losses. To best protect your business from fraud and chargebacks, consider working with an expert like Best Payment Providers.
Being focused on terms, complaints, and integration, Best Payment Providers can help you obtain the most advanced and secure fraud prevention and chargeback mitigation solutions in the industry.
Be Wary of Friendly Fraud
Online fraud doesn’t only mean false or illegal transactions via stolen payment or identity information. You should pay special attention to friendly fraud as it can be ominous.
Friendly fraud can also create major headaches for you. In this case, customers turn to the payment provider requesting it to cancel payment on a received product or service. This results in costly chargebacks to merchants.
Friendly fraud is widespread among almost all types of eCommerce businesses. However, it’s mostly found among businesses offering subscription services and in the gaming industry. About one in every 2,000 online transactions led to chargebacks as of November 2021.
Being Wary of Online Fraud: Friendly Fraud
The increase in online transactions is accompanied by a rise in online fraud. You should be wary of friendly fraud and work with a reputable payment specialist to combat fraud with ease.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of comparison specialists like Best Payment Providers. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.