Retailers are doing an ever-increasing percentage of their business over the internet, as a greater proportion of overall UK retail spend is taken up by etail.
It is a challenge for SMEs and start-up businesses to select and mobilise their online payment platforms. They face a number of difficulties, from synchronising technology, to fraud prevention and management.
Research by payment provider PayPoint.net reveals that 98% of web shoppers check for security reassurance on a website before buying.
Additionally, 81% of UK online shoppers are more suspicious of the security of small, unknown companies.
It is for this reason that retailers are making security and fraud prevention their top priorities when choosing an online payment provider.
Retailers can use sophisticated back-office fraud tools to monitor any discrepancies in payment details, such as geolocation, which identifies the IP address of the customer making the purchase.
To mitigate risk and remove the liability for fraud from merchants, retailers should use 3D Secure, a buyer identification process. This PIN-based authentication system is offered to merchants by Visa and Mastercard and may be called “Verified by Visa” or “Secure Code”.
Any online payment platform that a retailer chooses should also comply with data security standards. This enables retailers to meet rigorous Payment Card Industry Data Security Standards (PCI DSS).
Choosing a payment provider that offers PCI DSS compliance, dynamic fraud management and 3D Secure enables a small business to operate securely and win the trust of customers, while focusing on what is really important – running their business.
- Michael Norton is managing director of payment service provider PayPoint.net