The online shopping trend and era can be both beneficial and disadvantageous for merchants. Online shopping extends the hours of your store, allowing customers who are unable to make it during business hours the ability to shop. They are able to purchase the items without ever leaving their homes. As a merchant, you also have the ability to extend your products and services to customers who live far away from your business base. Online shopping is a great way to increase your profits and to extend the name of your business across the entire world. However, online shopping can open you and your customers up to credit card fraud. Merchant chargeback protection is important as a business who offers online shopping to its customers.
Global Ecommerce sales generate $931,490 every 30 seconds through desktop sales and $269,683 through mobile devices. There is clearly a huge market for online shopping as a merchant. Your business has the ability to bring in a lot of new customers and a lot of profits once you offer online shopping. However, once security or data breach that affects your customers can cost you a lot. Your customers will lost the trust in the security of your online shopping area and may never order from you again. Also, they are likely to not recommend your services or products to their family and friends. Merchant chargeback protection can prevent this from occurring.
About 54% of data breaches in 2014 were related to identity theft, 17% aimed at financial access and 11% sought account access. A security breach to your customer?s data and your businesses data does not only harm your customers. It also harms your business. If someone were to gain information about your business, they could steal your ideas and products, all of your customer?s credit card information and lock you out of your online business.
In 12% of cases of credit or debit card fraud, an internet website is the initial point of contact. Another way that your business can be harmed by poor security information is with inaccurate customer information. When a customer purchases an item from your online store, they input their credit card information into the system. It may take a few days for the funds to be processed and transferred to your website. However, most customers expect their items to be shipped immediately. If your online store does not have the ability to monitor and check accuracy of bank information, you may not have accurate banking information for a customer that you have already shipped out an order for. If the payment never goes through or if there is a card not present chargeback from the credit cards payment services, you may never get your payment from the customer. This is why it is important to go through a chargeback protection for Ecommerce merchant when taking online payments. Merchant chargeback protection is important in detecting fraud or in recognizing inaccurate credit card information.
When offering online shopping to your customers, you should either wait for the funds to clear and be available in your banking account or you should go with a funds merchant that offers you with merchant chargeback protection. Chargebacks can really harm your business and the overall success of it. If your business is not large enough to offer this type of secure credit card processing system, there are already established payment processing systems that will only take a small fee. The small fee is better than not receiving payment for already shipped items or for having you and your customer?s information breached.
A lot of shopping today takes place on the internet. The convenience is unlike anything else. However, merchants need to be careful about the payment options they offer to their online shoppers. They need to protect their customer?s credit card information, while also protecting the success of their business. A chargeback can leave you with an already shipped order, only to never receive the funds for that order. Online merchants that are smaller may find it more beneficial to utilize the services of an already established online payment processing service.