Fraud prevention is a tightrope act. You want to protect your business from fraud and chargebacks. But if you overprotect, your bottom line can suffer. Absolutely do what you can to prevent fraud, but know what you can do in-house and know how to save time and money working with a partner like ChargebackHelp.
If you’re going it alone and taking on fraud entirely in-house, the costs of prevention can easily eclipse the outcome you’re trying to avoid. A recent study by Javelin Strategy & Research found that merchants of digital goods are the most at-risk group for fraud. In 2016, the digital goods sector saw losses from fraud of nearly 9% of total revenue. If that wasn’t bad enough, Javelin also found that fraud prevention and chargeback management cost merchants in this vertical up to 20% of their operational budget.
At ChargebackHelp, we believe that is far too much for any business to be spending against fraud.
Partnering with ChargebackHelp can greatly reduce your operational costs for fighting fraud. We monitor fraud alerts across the board, from true fraud to friendly fraud, and can intervene on disputed transactions before they become chargebacks. Doing this in-house requires personnel to monitor fraud alerts across multiple channels, and some disputes can still get through and become chargebacks. Chargeback Help provides comprehensive alert management across the full spectrum of transactional disputes that arise.
More on Fraud Prevention
All businesses should keep a watchful eye in-house against fraud. For lower risk businesses, that can be a very manageable task. But if you operate in high-risk verticals, dealing in digital goods, that undertaking can overwhelm your time and money fast. Moreover, in-house fraud shops can be overly protective, placing too much friction on their points of sale.
Friction is basically the amount of hoops a customer has to jump through. An example of a low friction sale point is a gas station; swipe your card, enter a zip code, and get gas. Super easy, but wide open to fraud—gas stations are usually the first stop for stolen cards. Too much friction and you’re liable to see a lot of abandoned shopping carts, or worse: the dreaded false positives where legit purchases are getting declined. You might be preventing a lot of fraud, but you’re also preventing a lot of sales as well.
That’s why it is imperative to have ChargebackHelp in your corner. If you are a merchant in a high-risk sector of ecommerce, it is far too easy to over-spend and over-defend against fraud. ChargebackHelp can provide the right balance of fraud prevention, chargeback management, and expertise, all for a fraction of the cost of an in-house fraud shop.