6 Credit Card Fraud Myths that Online Retailers Should Never Believe

Whether you’re a new e-commerce retailer or you’ve been in the online business for a long time, chances are you’re guilty of believing the common myths that have been circulating about credit card fraud over the years.

Read on to find out whether your beliefs match the facts or the fiction.

1. Credit Card Fraudsters Target Only Big Businesses

Small businesses and online retailers often assume they’ll never be the target of credit card fraud. They feel that their transactions aren’t worth enough to get noticed by fraudsters.

This misbelief is the main reason why such small businesses drop their guard against cyber crimes and become easy targets of fraud. 

Cybercriminals don’t spare any business, big or small. Retailers who don’t take cyber threats seriously are at the highest risk. Unfortunately, the only way some retailers learn this fact is by losing money to fraudsters.

2. International Credit Card Transactions are Riskier

Some business owners don’t expand their businesses globally simply out of the fear that there is a higher possibility of fraud in international transactions.

This fear is only a figment of imagination, though. There isn’t a high chance of fraud simply because you’re receiving payment from an international order.

Of course, there’s a higher risk when you’re exporting goods to another country, say Canada. That’s primarily because there are more chances of glitches in fulfilling orders, complicated returns, strict licensing and permit requirements etc. 

If your business is based in the US but you’re selling goods in Canada, you should always sign up for a high risk credit card processing Canada merchant account. With this service, you can rest assured that your business is protected against unnecessary chargebacks and other complications related to international sales.

3. Your E-commerce Sites is Fundamentally Secure

All e-commerce sites are not equally secure. In fact, very few websites can claim that they’re 100% safe from cyber threats. 

If you believe that your e-commerce site is fundamentally secure, you’re under the wrong impression. The fact remains that all e-commerce sites are fundamentally VULNERABLE to cybercrimes, especially credit card fraud.

To safeguard your business as well as the interests of your customers, you should take effective measures to strengthen your website’s security. You should also run security tests regularly and stay updated about the latest cyber threats.

4. You have No Recourse Against Fraudulent Chargebacks

Credit card chargeback fraud is indeed rampant. It’s also a rising cause of losses to many small online businesses. 

Don’t think that a fraudulent chargeback is a lost battle. You can always dispute a chargeback and claim your money back. 

Make sure you keep a record of all the details of customers’ orders, proof of delivery, etc. With this information, you can make a winning claim against false chargeback.

5. Chances of Frauds Rise During Peak Buying Season

Many online retailers experience peak sales during the holiday season. They also presume that’s the time when they can expect more cyber attacks and frauds.

This idea is grossly misconstrued. More sales don’t necessarily mean more fraud. 

Most of the holiday sale transactions are made by genuine buyers. That’s only because it’s a festive time and people are willing to spend more. Simple economics, right?

6. You can Easily Spot Suspicious Transactions 

Some retailers trust their business intuition pretty strongly. They think they can quickly spot suspicious transactions and can never be cheated.

A transaction may raise your suspicion because it’s of very high value, or the buyer is seemingly desperate for expedited delivery. But for all you know it can be a genuine transaction, and in many cases, it is so.

Credit card fraudsters are very cunning. They plan and strategize every attempt to make it look ordinary and escape your suspicion. 

Credit card frauds are not easy to prevent, at least not by intuition alone. You need the right security measures to protect your business from such fraud.

Conclusion

Cybercriminals often target businesses which are seemingly unaware of the nature and extent of cyber crimes. 

Believing in myths can make you an easy target of credit card fraud and other cyber crimes. We hope that the facts we’ve discussed here would clear your misbeliefs and prompt you to become more vigilant. 

Remember, cyber security should always be the top priority for your online business.

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