While credit card transactions are going up dramatically, so is credit card fraud. The Nilson Report states that by 2030 credit card sales will hit $79 trillion globally, however businesses are set to lose an estimated $49 billion to fraud.

While there are many protections available and being used by most retailers, e-commerce is still the biggest target for fraudsters. And even though successes are made to update shopping carts, and gateways, fraudsters are becoming more sophisticated in their efforts as well.

Another fraud issue that is gaining steam is so called “Friendly” or “first party fraud”. This is when a cardholder claim is made by a family member or themselves to initiate a chargeback, even when the sale or service was legitimate.  Roughly 1/5 of all chargebacks fall into this category. The Card industry is moving towards making it an official fraud category.

What can businesses do to help mitigate this problem? First thing is making sure your terminal or POS system is able to accept chip or NFC face to face transactions. This is the best way to help fight fraud. Making sure receipts are signed by the actual card holder name on the card is also the best way to fight fraudulent chargebacks.

E-commerce is always going to be trickier. Again, making sure your site’s firewalls are up-to-date, verify your shopping carts are using the latest encryption and tokenization, and run security tests regularly on your website. All of these measures will help keep fraud for your e-commerce to a minimum.

To see if your face to face equipment or e-commerce payment systems are up-to-date, always check with your credit card processing provider.

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