Most of the merchants face losses from the fraud they encounter on a regular basis. Many novice and intermediate merchants take this matter lightly, which is why they really don’t have a clue about their business losses while evaluating their business performance. Furthermore, there are many misconceptions about the fraud, which most of the merchants believe. It’s high time that every merchant educate themselves about the difference between fiction and the actual fraud. Here are the 5 very important facts that every merchant should know about the fraud and its detection:
- Be aware of the friendly fraud: High-level data breaches that are usually widely publicized made merchants believe that most of the fraud spectrum is comprised of criminal fraud. But when it comes to reality, almost 85% of the fraud is simply the friendly fraud.
- Reason Codes are not as effective as they seem: What most of the merchants are unaware of, is the fact that most of the reason codes, which are very unreliable, can simply be disguised to implement friendly fraud.
- Friendly Fraud can be detected and prevented: When it comes to the frauds that merchants face with chargebacks, friendly fraud is the most problematic one. A merchant should really focus on identifying the error and simply conclude whether the problem is from their side or the other.
- Don’t rely heavily on Fraud filters: When it comes to fighting frauds, most merchants believe that they’re safe by using fraud filters, but they don’t know that fraud filters are only as effective as first line defense.
- Additional technology can help you: Complimentary technologies like Chargeback alerts can really help you by leaps and bounds. Even numerous issuing banks also use such technologies.