What are the best categories of online payment methods for businesses or consumers?
Payments
Asked by Question Bot12/Oct/20141 answer
1 Answer
F
Faisal Khan
Answered 12/Oct/2014
Quite frankly, if you're okay with a payment method that prevents fraud 80% of the time, this means you are looking at a 20% fraud rate. That rate is simply unheard of in the industry and is a killer rate.
You should be on the lookout for payment systems where the fraud rate can be controlled down to 1% to 2% (at best). Most companies strive to keep their fraud rates under 1% else they will most likely get a warning from their processor/bank, etc.
Fraud will be ever-present. It cannot go down to zero, even in the physical world, with all the ID checks, in-person reviews, etc. fraud still happens and will continue to happen. For there-in lies a criminal in bed, starring at the ceiling thinking how to fraud the system. How to make a quick buck. The imaginative powers of such a person cannot be match. He/she will dwell on this problem for weeks --- finding a way to penetrate through the rulesets. The payment systems world tries to keep up with this pace.
Depending on where you are in the world, each payment system has its own pros and cons. So there isn't one answer per se.
Fraud & Risk mitigation is what a lot of payment system invest in and continually keep tinkering with it - so as to minimize risk.
Such fraud and risk mitigation techniques are implemented by the payment system and the merchant themselves. You need to figure out how it is you can reduce fraud on the products/services you are selling without cart abandonment.
You should be on the lookout for payment systems where the fraud rate can be controlled down to 1% to 2% (at best). Most companies strive to keep their fraud rates under 1% else they will most likely get a warning from their processor/bank, etc.
Fraud will be ever-present. It cannot go down to zero, even in the physical world, with all the ID checks, in-person reviews, etc. fraud still happens and will continue to happen. For there-in lies a criminal in bed, starring at the ceiling thinking how to fraud the system. How to make a quick buck. The imaginative powers of such a person cannot be match. He/she will dwell on this problem for weeks --- finding a way to penetrate through the rulesets. The payment systems world tries to keep up with this pace.
Depending on where you are in the world, each payment system has its own pros and cons. So there isn't one answer per se.
Fraud & Risk mitigation is what a lot of payment system invest in and continually keep tinkering with it - so as to minimize risk.
Such fraud and risk mitigation techniques are implemented by the payment system and the merchant themselves. You need to figure out how it is you can reduce fraud on the products/services you are selling without cart abandonment.