Ecommerce Merchant Risk Types

Transactions that are fraudulent, security breaches, personal account card data being stolen, telephone or mail order establishments, cost ecommerce make it imperative in the case of merchants who are involved in this industry to have the required knowledge on the risks associated with internet businesses. If the business you are involved in takes payments in a situation that can said to be “card-not-present” there will be a need of developing the internal policy for addressing the potential risks and training your staff on its implementation.

The risks involved in a mail-order or ecommerce organisation are mentioned below:

Fraudulent transactions: Online fraud can come in several shapes like a customer using a card number that is stolen for purchasing services or products fraudulently; a card is used by a relative for making purchases. This will be without the authorization of cardholder, a customer making a false claim of not receiving the shipment and criminals hacking into the system for processing card of the ecommerce merchant and issuing credits for themselves.

Theft of the information on card account that is committed through online: There are several ways which make hackers able to access the card data regarding personal payment. They are as follows:

During the transmission of payment processing the data regarding card account should not be intercepted. If this is done then it will be helpful for hackers. The transmission should be from or to the merchant.

Accessing the system for processing of payment of the provider of merchant account that is protected inadequately. By doing this the hackers can steal the required data easily. So it is necessary to protect the system for payment of processing adequately. This can prevent such problems.

Theft of Information on the Card Account from the Physical Site: There are several ways which enable the hackers for stealing the data from a physical centre of data. These include:

Stealing the data on payment account by a person from outside from the site of a provider of merchant account. Then in most cases they will use the collected information for selling for an use that is unauthorized.

Stealing the data on payment account ay an employee of the provider of merchant account and again this information will be sold for a use that is unauthorized.

Stealing of data on personal account that is unshredded from a provider of merchant account by the “dumpster-truck’s driver”.

Consumer Disputes and the charge backs: There are several reasons for the disputes from customers. Some of them are as follows:

The service or product is different from the services or products described in the promotional website or material.

The customer will be billed before the shipment of goods or before the services reaching the customer.

In case there is the misunderstanding regarding an order being cancelled or the refund and return of a particular product.

Two bills are sent to the customer for a service or product or the amount being transacted will be incorrect

The name of the merchant will not be recognized by the customer on her or his statement of credit card and

The card of customer is changed without the permission of the customer.