It is expected that U. S. companies specialized on electronic commerce will lose a record $ 4 billion to online fraud this year. It is the result of annual Cybersource survey on e-commerce fraud. According to that research e-commerce fraud rise is observed over 2007, when it set the previous record of $ 3.7 billion. And the Data of 2008 are not surprising. It represents 1.4 percent of merchants' total online revenue for the year. About the same losses the merchants have experienced in each of the past three years. However, the U. S. companies are taking some steps to fight it. And the results of such battle depend on merchants' size. For example, midsize merchants with online revenue of $ 5 million to $ 25 million are considered the most challenged by online fraud. Midsize companies show higher order rejection rates (4.3 percent compared to 2.4 percent of larger merchants), higher manual review rates (34 percent of orders, vs. 15 percent), and higher fraud loss rates (1.6 percent of revenue vs. 1.2 percent).
Moreover, as Doug Schwegman, CyberSource director of market and customer Intelligence commented that this year for the first time U. S. e-commerce merchants could not rely on double-digit market expansion to bolster online revenue growth or to cover inefficiencies.
Before this year merchants have been loosing about 1.4 percent of sales to fraud constantly.
It is believed that larger merchants have more opportunities to fight fraud because they make better use of fraud detection tools and other resources.
And according to CyberSource study currently merchants fight only about half of the fraud chargebacks they receive. One-third of merchants challenge fewer that 10 %. But merchants that do elect challenge chargebacks recover, an average, 28 % of their fraud chargebacks. However, for many merchants, this remains an untapped opportunity.
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