It’s uncommon that we hear great news with respect to graft in the US merchant services industry, but Visa discharged an infographic recently detailing how bogus credit card fraud in the US is declining a whopping 75 percent, largely due to the migration to EMV chip credit cards three years ago.
The magnetic stripe on the ‘former’ version of credit cards includes all the vital and delicate financial information to make the purchase. When that data is embezzled from a merchant, fraudsters can very easily and swiftly decipher the information into a counterfeit magnetic stripe and utilize with a new card and sell it on the dark web. It is very much difficult for a fraudster to enter the EMV chip to access payment information. Visa’s infographic is outstanding, appreciating news in its own sense. Customers are convinced at the point of sale than ever before. But the scammers and plagiarists haven’t wiped away. Like any business, they’ve modified and moved on their collective focal point to the US merchant services online market.
There’s A Jerk To Visa’s Infographic
In view of the symbolic reducing instances of scams, we still have a genuine, damaging fraud complication. What the infographic doesn’t acknowledge is that scamster have adapted their method by pursuing over to and levying their predatory ‘art’ on e-commerce businesses, where the credit card is not present with online transactions. While exploring millions of online transactions, credit card broadcasting leader Experian found that online credit card scams increased 30 percent in the year 2017 (earlier 2016), even overcoming the growth of online shopping.
What Took ‘US’ So Long?
The US was the last developed nation to move over to EMV chip-enabled credit cards. Merchants required new POS machines to stem EMV cards, which could be costly for a small business, and they didn’t want to incur this amount of money on such equipment until the issuing banks were circulating the new EMV cards. In contrast, issuing banks didn’t want to expend the money establishing EMV cards until merchants had the EMV credit card readers in place. Additionally, it is a lot more expensive for issuing banks to replace an EMV credit card than a magnetic stripe card. Thus, absorbing the cost of fraud was less expensive than producing new cards.
In essence of that, merchants and issuing banks criticized each other. But today, a significant number of Visa EMV chip cards in distribution has gone from 159 million in 2014 to around 500 million for the three successive years.
How Are Merchants Dealing With Wave Of Fraud?
In 2008, when Canada transit to EMV chip cards, e-commerce scams escalated in the consequent years. Similarly, thing happened in Europe and the U.K just post-millennium. Merchants should take action to assure themselves, if not before.
Outsourcing payment platform: It is certain that hackers like to move in and out swiftly. Time is money for sure. Largely most of them, they are not gentle and shall proceed on to another focal point if one justifies too tasking. Therefore, many merchants deploy their payment platform because it enumerates an additional, important obstacle for a hacker to beat that.
Manual reviews: Possibly the most unliked phrase in the US merchant services sector, operating daily manual reviews on transactions which are vital for merchants who may not be able to manage a fraud or chargeback avoidance curriculum. However, operating daily manual performing regular reviews on transactions can be tasking and take a lot of time, the good news is that there are enough data and strategy available by handling a simple online search.
Machine learning, AI making noise: Those merchants who have the capability to set up a fraud management scheme into their budgets, utilizing machine learning and artificial intelligence to direct transactions is testing to be very popular. With machine learning and AI, merchants are have become capable to establish custom rules on every transaction — for instance, listing out those with questionable principles:
- Billing and shipping address not same
- New customers with atypical huge purchases.
- First-time purchases from suspicious regions around the world.
- Purchases shipped to suspicious locales, for example, a P.O. box, a vacant home or local shipping store to be fetched
- Purchases and orders placed during abnormal hours
The Best US Merchant Services
It is likely not much known that small businesses contribute more than 70 percent of all the data violations and hacks. Our objective is to keep merchants processing platform secured from cybercriminals and hackers.
We would like to tell you that we provide the best US merchant services for several reasons:
- History: Providing low and high risk merchant accounts services since 2001
- Our real-time, person-to-person, 24/7 merchant support.
- We have a wider network of domestic, international and offshore banking partners.
Ipaytotal coordinates your e-commerce business with the most favorable acquiring banking partner for your industry.
To Know more Give us a call at +44 800 776 5988 or get in touch with us through our website. Our customer care support is available 24/7 to give your business the best solution no matters where you are. You will be amazed by the service provided by us. Contact us to learn more about what we can do for you.