eCommerce Blog

eCommerce Blog – Opportunities in US and India (by Darpan Munjal)

Enabling your ecommerce site for secure payments

Posted by Manju Murthy On October - 21 - 2009
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All online retailers are concerned about minimizing charge-backs and payment fraud. This is one of those costs that can be minimized if appropriate and proactive steps are taken.  Manju Murthy has done a good job of providing a background on online payment fraud and some of the new initiatives such as two factor authentication. Thanks Manju!

Malware on the PC (and elsewhere) can harvest credit card numbers when entered during ecommerce payments.  Such harvested numbers can be used by fraudsters to purchase goods with purchase showing up on the users credit card bill.  This results in chargebacks, penalties and increase in interchange rate.  In India, online merchants see chargebacks of around 3% (some verticals have over 20% fraud).  In a market that is at $5B and growing at a CAGR of about 30%, you can quickly compute the impact of online payments fraud in India.

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