ClearSale’s EVP, Rafael Lourenco, is featured on Payments on Fire, a Glenbrook Partners podcast that focuses on the latest developments in the payments industry.
Remote payments are expected to grow about 15% each year, which means that e-commerce merchants can also expect a rise in fraud losses and chargeback rates. Meanwhile, better security technology (like the shift to EMV) has reduced fraud at point-of-sale terminals which is forcing fraudsters to adapt and shift focus to Card Not Present (CNP) fraud.
ClearSale’s EVP, Rafael Lourenco, sat down with George Peabody, host of Payments on Fire, to discuss the delicate balancing act that e-tailers face when it comes to fraud management today. Payments on Fire is a Glenbrook Partners podcast that focuses on the latest developments in the payments industry. During this interview, Rafael explains that when e-tailers err too far on the side of fraud reduction by overtightening approval standards, they risk declining good customers. And with false declines costing the US e-commerce industry more than $8 billion in lost sales—in 2016 alone—e-tailers, especially smaller merchants, cannot afford to upset potential customers.
However, if approval standards are too loose, e-tailers could suffer from higher fraud and the enduring costs of higher chargebacks. If chargeback rates exceed 1%, e-tailers could be placed on a permanent watch list and potentially lose their card acceptance privileges if the issue isn’t resolved.
To help e-tail merchants, Rafael discusses in detail the benefits to an outsourcing model and best practices for fraud prevention while minimizing chargebacks.
Check out Rafael’s full interview on the Payments on Fire podcast here!
Sarah Elizabeth