The new year is a time of new beginnings, and subscription businesses should take this opportunity to reexamine their strategies for combating CNP fraud. Whether accepting orders that are fraudulent (which often results in chargebacks) or denying legitimate orders on the mistaken belief that they may be fraudulent, merchants stand to lose a lot of money if they aren’t able to effectively mitigate fraud.Continue Reading
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According to CardNotPresent:
“Merchants will lose more than $70 billion globally to card-not-present fraud in the next five years, but many still think fraud prevention is too costly, according to a new report. U.K.-based consultancy Juniper Research found that the ongoing migration to EMV technology in the U.S., a slower-than-expected rollout of 3D Secure 2.0, and a significant vulnerability via click-and-collect fraud are all factors that will drive CNP fraud losses in the next half decade.”Continue Reading
What do Delaware, Oregon, and Florida have in common? According to an analysis by Experian, these are the states with the highest fraud related to billing and shipping from card-not-present (CNP) transactions. If you’re an ecommerce business trying to combat this kind of fraud, you should perhaps pay extra attention to orders with billing or shipping addresses in these states. And if you get orders from South El Monte, California, look out. Experian identified this city as having the highest incidence of both billing and shipping fraud—with 1 percent and .64 percent respectively of all orders from that municipality found to be fraudulent.Continue Reading
In December, Recurly published research on holiday shopping that showed that subscription commerce continues to grow at an impressive pace. This mirrors the overall growth in holiday e-commerce, which industry research indicates grew by 16% over the previous year. Unfortunately, while Santa was bringing more gifts to more people, the Grinch was busy stealing gifts—and revenue—in the form of online fraud.Continue Reading
During the holidays, e-commerce businesses know that fraud can run rampant. That’s the impression anyway, but is it actually true?
What is true is that a lot more people are shopping and spending money, both online and off during the holiday season. This year, e-commerce holiday revenue is expected to increase by 11%—from $83 billion in 2015 to $92 billion in 2016. The increase in the number and size of transactions will certainly result in an increase in fraud in absolute terms, although fraud is not necessarily higher when measured as a percentage of total transactions.Continue Reading
As the subscription model continues to expand its share of the e-commerce market, more and more businesses see the revenue opportunities the model entails. Whether it’s subscription handbags or study aids, charitable giving or video streaming, businesses both established and upstart are adding a subscription component to the mix—or jumping in wholesale, having chosen the subscription model as the best way to meet their customers’ needs and desires.Continue Reading
All the research indicates that fraud attacks are on the rise and that fraudsters’ strategies and tactics are becoming ever more sophisticated as fraudsters become more brazen in their attempts to steal from businesses and consumers. Fraudsters also have a new favorite target: digital goods. As a result of fraud, card-not-present (CNP) merchants face losing revenue from chargebacks and the loss of the fraudulently obtained goods or services. If the fraud exceeds card processors’ thresholds, they can also face potentially damaged relationships with card issuers, gateways and merchant banks—the entities that businesses depend on to be able to process their payments.Continue Reading
Gift Subscription is not just a holiday buzzword for subscription businesses, it’s a smart customer acquisition strategy. Using the psychology of ‘social proof,’ a gift subscription given between friends or loved ones puts the gifter’s stamp of approval on the product or service, making the recipient more likely to use the gift and convert to a paying customer.Continue Reading
There’s no doubt that the internet has brought myriad and far-reaching benefits to people and organizations worldwide. Unfortunately, it’s also brought hackers, fraudsters, and other criminal elements intent on stealing our personal and financial information. They are relentless, exceedingly inventive, and always looking for the next exploitable vulnerability.Continue Reading
Last month, we wrote about how summer is the perfect time to start thinking about the holiday season—especially if you’re a retailer! Designing, planning, and getting ready to implement your holiday promotions (using Recurly’s coupon feature, of course!) takes time to do well and get the results you hope for.Continue Reading