Handling E-Commerce Risks
Chargebacks are transactions that are returned as your financial liability, and they translate into extra processing time and cost in addition to possible loss of revenue. They occur for several reasons, including:
• Customer-disputed transactions
• Authorization issues
• Inaccurate or incomplete transaction information
• Processing errors
When cardholders dispute transactions on their statements, they usually ask for a copy of the receipt, which you should provide to the card company as soon as possible to avoid loss.
Selling your goods online can enhance customer relationships, attract new customers and increase sales revenue. However, if you are considering expanding your business online, it is important to understand what is required to maximize information security and minimize credit card payment risks. E-commerce sites that have little or no fraud controls in place can experience a chargeback rate of 10 percent or more. It is important to understand the basics of credit fraud before opening up for business online.