Even before the EMV liability shift went into effect nearly a year and a half ago, security and reducing the number of fraudulent charges nationwide were big points of emphasis throughout the payments ecosystem. As technology advances, so too do the tools necessary to fight this kind of fraud on an ongoing basis. When it comes to reducing the number of fraudulent charges, knowing the industry-recommended best practices for increasing payment security is a crucial jumping-off point.
One of the big issues is that chargebacks have long been seen as an unavoidable problem for merchants of all sizes, according to a report from Retail Week. And while EMV and mobile payments are beginning to chip away at many types of fraudulent payments overall, other issues – including “friendly fraud” – still linger for retailers to deal with. For this reason, it might be wise for merchants to look at as much data as they can about the chargebacks they’ve dealt with and see if common threads crop up. If so, that might inform good decisions going forward.
“Chargebacks needn’t be accepted as a cost of doing business,” Monica Eaton-Cardone, chief information officer of chargeback specialist Global Risk Technologies, told the site. “Education is key in helping retailers understand what to do when payments are returned so they can implement strategies to fight chargeback threats successfully.”
New Lines Of Defense
The good news is that in-store fraud is already on the decline thanks to widespread use of mobile and EMV platforms that make it harder to complete bogus transactions, according to Due.com. While these platforms present opportunities for criminals to experiment with ways to crack the even higher levels of security, it’s likely to be difficult for them to actually do so without having some amount of payment information beforehand.
In addition, as EMV and mobile adoption ramps up, criminals are also more likely to focus on online fraud or stores that have yet to set up these next-gen point-of-sale devices, the report said. Spending on payment security is expected to rise to more than $3.1 billion within the next few years as more efforts are made to safeguard all aspects of the payments ecosystem.
The Plan In Action
There are many reasons why companies that were slow to adopt didn’t pull the trigger right away, with concerns about cost and efficiency in processing payments quickly perhaps chief among them, according to The Buffalo News. The East Coast grocery chain Wegman’s held off for the latter reason, and also to make sure it could roll out the technology as effectively as possible.
“There are always some glitches when you make a transition like this but, in the long run, the new technology pays off,” Ram Bezawada, associate professor of marketing in the University of Buffalo School of Management, told the newspaper.
For these reasons, it’s vital that small merchants take the step toward EMV- and mobile-capable POS devices as soon as possible, so that they too can be on the vanguard of reducing payment fraud.Back To Blog