Many cardholders have experienced a feeling of dread when finding purchases on their bank statements they were unaware of and had not made. It’s no surprise that it leads to a chargeback. The merchant stands to lose the revenue due to it not being a legitimate purchase.
What is CNP Fraud?
CNP or Card Not Present fraud is when an item or service is purchased by someone other than the person authorized to use a bank card. It accounts for a large portion of chargebacks happening each year. It leaves the merchant with a loss in merchandise or service and no payment forthcoming.
How Does CNP Fraud Happen?
CNP fraud can happen through several means. At times, it’s due to stolen credit and debit cards. Hacking accounts and stealing an identity is another way that a criminal can access private banking information to make purchases. No matter how the information is gained, the rush to get immediate sales makes it tempting to be less restrictive with online, mail, or telephone sales.
How CNP Fraud Damages Your Business
One of the worst impacts to your business from CNP fraud is the financial loss from offering services and products for which you’ll never see payment. It can cause high banking fees and penalties when you don’t plan well for unexpected chargebacks. CNP fraud can also make you nervous to accept bank card payments and damages your business reputation. It’s important to find a reasonable solution to reduce and eliminate CNP fraud.
Layer Your Protection
There are several steps you can take to incorporate CNP fraud protection into your sales process. Getting the security code from the back of the card is one step. It’s also possible to use secured payment systems, address verification, and more. The worst thing you can do is nothing or begin limiting your sales by refusing card sales.
Get the CNP Fraud Protection Service You Need
Getting burnt by fraudulent purchases from cards and card information gained through nefarious activity is a reality for any business. Rather than stepping back from card acceptance for purchases, hire the CNP fraud protection services to stay on top of the problem. You can get the alerts and networking it takes to narrow down the card information theft that leads to fraudulent purchases.
Reduce your risk of CNP fraud and feel more confident in taking card payments by adding fraud protection services to your daily order processing. You can make your organic customers happy and reduce the financial loss that fraudulent purchases bring.