Cross-border ecommerce represents a tremendous opportunity for enterprising entrepreneurs, but the opportunity comes with a caveat: Cross-border fraud is on the rise.
Fortunately, emerging technologies are adding advanced layers of fraud protection to facilitate safe, secure transactions that enable entrepreneurs to maximize the opportunity. The progression is rather simple, really: An entrepreneur selling widgets out of a brick-and-mortar operation realizes the expanded reach an ecommerce site would afford them and they start processing online. As market share grows and business booms, the prospect of expanding the customer base by going global is too compelling to miss. But what changes when an entrepreneur wants to start processing (and fulfilling) card-not-present (CNP) transactions across borders? The biggest obstacle is unquestionably fraud – and the potential solutions are driving a revolution in multi-layered fraud protection technologies.
Consider the technology designed to mitigate fraud in each of the merchant channels described in the example above. At the point-of-sale (POS), EMV (Europay, Mastercard and Visa) technology is already dramatically reducing the risk of identity theft and card/PAN (personal account number) theft. However, as technology improves at one level, the fraudsters find their new opportunity at the next. In domestic CNP transactions, technology tools such as address verification services (AVS) and CVV2 are standard here in the United States. In cross-border commerce, however, the entrepreneurs (and consumers) require added layers of security.
Multi-layered fraud tools (such as Payscout’s fraud solution suite) connect to multiple data sources, such as device fingerprinting and geo-location services, on top of the AVS and CVV2 solutions. Those added layers of security support more secure transactions, provide further insight and promote quality know-your-customer (KYC) practices. Cross-border merchants need fraud solutions that create customized fraud algorithms, based on the entrepreneur’s requirements, that connect to multiple data sources. With these solutions in place, merchants can protect their bottom line – and their margin growth.
These technology tools (and partnering with the right payment processor to provide them) help merchants reduce risk and maintain margin growth. Payscout is leveraging these tools on a global scale in an effort to achieve its mission to “support the entrepreneurial dream one [secure] transaction at a time.”