When selling in a customer not present environment, a business is very often exposed to the risk of fraud. Each payment method and each channel brings its own level of risk and hence exposure. In order to address these risks, controls are required. With these controls additional costs can emerge, all of which should be taken into account when deciding your online payments strategy. Either way fraud is an issue that must be managed.

Fraud can be classified into different headings which may make it easier to decide on the controls – credit card fraud / stolen credit cards / identity, made-up credit card and account numbers, 1st party fraud and internal fraud.

Awareness and understanding of the chargeback management processes is important. This understanding combined with an analysis of the data can help to reduce chargebacks.

On an ongoing basis be sure to review your transactions for other patterns, study any fraud that has occurred in the past and use this to update the rules and processes you have in place to detect fraud in the first place – fraud management is an ongoing process and not a once off implementation.