Tips to reduce fraud in online sales

Today we invite our colleagues from , one of the best-known payment gateways to sell and receive payments online, to give us their experience on how to improve security in an online store.

It is no secret to anyone that electronic commerce has had considerable growth in Latin America: a study by the consulting firm Forrester Research projects that by 2018 the growth of electronic commerce in countries such as Argentina, Brazil and Mexico will be 138%, reaching to figures of up to $47 million dollars a year.

This positive scenario also implies an increase in the risks of fraud for buyers; new forms of scam are continually presented. Payment gateways usually have tools to help you reduce the risk of fraud. For example, PayU has an anti-fraud module

that combines parameters that are applied to the data of a transaction and an advanced algorithm that evaluates the security of the transactions and reduces the risk of fraud to less than 1%; however, there are also complementary measures that you can take to reduce risk situations for both buyers and your website. e-commerce.

What is a fraud?

In internet sales, a fraud is generated when a person obtains the data of a credit card that does not belong to him and makes a purchasegenerating an unauthorized charge.

It is common to see this type of fraud when credit card data is shared indiscriminately by the card owner or when, due to the low security of websites, the data may be visible to users other than the buyer.

Once a fraud is generated, usually the real owner of the credit card makes a formal complaint to the bank or the registered store unaware of the purchase and requesting the refund of the money associated with fraud, this process is called chargeback.

After the owner of a credit card makes the formal request and generates a chargeback related to an electronic commerce store, the payment platform you are using will request the information available in your virtual store to verify if the owner of the credit card creditor forgot that you made the purchase, or if it was indeed a fraud.

Here you can know.

Tips to reduce fraud on your sales site on-line

1. Request your buyer’s contact information: Before finalizing the sale, it is advisable to request data such as contact telephone numbers, the identification document or the shipping and billing address of your product.
2. Have a payer registration system: If before making a purchase the potential payer must register and provide a verification email, it is easier to find unusual behavior in purchases such as consecutive purchases in a very short period of time.
3. Check the veracity of the data: Before sending a product, it is advisable to confirm through the contact telephone numbers if the other data entered at the time of purchase is related to the means of payment used.
4. At the time of delivery, carry out a final validation: When you make the final delivery of the product, it is advisable to request an additional document that validates that the person receiving the product is the same person who made the purchase and requesting the signature.
5. Do not keep credit card data visible: During the purchase process it is important not to show the credit card number on the screen, solutions such as PayU Tokenization can help you encrypt this data so as not to store it before making the purchase.
6. Include personal verification systems such as CAPTCHA: With these verification methods you can reduce the possibility of a hacker making massive transactions.

Tips for buyers on your website

There are several tips you can post for your customers to reduce the risk of fraud:

1. Do not share credit card data through mail or courier services.
2. Make payments from personal computers or devices, never from computers for community use.
3. Avoid using open Wi-Fi networks.
4. Do not lose sight of credit cards when making a payment.

Finally, If your online store faces a chargeback dispute, it is important to have as much evidence and information available to you as possible. from the time of purchase and delivery of the product. If you use PayU, it is vitally important that you provide this information as soon as possible, since this way it will be more likely to verify the identity of the buyer and resolve the chargeback.