As the U.S. e-commerce market continues to strengthen, so too does its security. A new report from CyberSource Corp., part of Visa Inc., found that fraud rates for both online and mobile sales fell between 2014 and 2015, suggesting that despite its rapid growth, e-commerce remains a secure option for businesses looking to expand their reach.
"Despite its rapid growth, e-commerce remains a secure option for businesses."
The CyberSource survey polled more than 300 U.S. and Canadian companies, finding fraud cost companies just 0.8 percent of their online sales last year, down slightly from 0.9 percent in 2014. In comparison, e-commerce sales jumped as much as 14.6 percent between 2014 and 2015, according to estimates released by the U.S. Department of Commerce earlier this year.
Mobile shopping saw an even greater boost in security, according to the survey. Last year, mobile fraud accounted for just 0.5 percent of sales, nearly half of 2013's mark and almost one-third of the fraud rate in 2012. That decrease comes despite projections that m-commerce growth has in fact outpaced e-commerce by more than 300 percent over the last three years, according to a PayPal study reported by PYMNTS.
Preventing fraudulent transactions
When it comes to preventing fraud at checkout, the card-not-present environment proves difficult to control. However, processing a fraudulent or stolen credit card number can lead to significant loss on your bottom line, an area where the merchant, not the payer, holds liability.
If you run a manufacturing, supply or wholesale business and want to learn more about the risk of card-not-present sale fraud to your company, or take steps to upgrade to the appropriate B2B payment solutions, contact Vantage for a consultation. We can help run you through what you need to know and how to keep an eye out for fraudulent purchases.