Stop Payment Fraud from Eating Your E-commerce Profits

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… but there’s a persistent and growing threat to every business that accepts payments online.

You’re working hard tomake your online commerce business profitable …

!

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Why?

• The move to EMV chip cards has made online an easier target than brick-and-mortar stores.

• Criminals have easy access to potential victims all around the globe.

The threat:Credit-card fraudsters love the online commerce business, too.

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The overwhelming share of losses to merchants from credit card fraud come from card-not-present (CNP) transactions, and the problem is getting worse.— Card industry newsletter The Nilson Report, October 2016

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If you take credit card payments online, you need a proactive plan to protect your business and its reputation.

Start with thesefive steps.

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#1Know the difference

between data security and fraud prevention.

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Good data security practices

protect your customers’

information.

Good fraud prevention

tactics stop bad transactions

that cost you money.

Good data security:

When you comply with PCI

DSS, the Payment Card

Industry Data Security

Standard, you’re taking care

that consumers’ personal

information isn’t vulnerable to

being stolen.

Good fraud prevention:

Identifies and stops

transactions that attempt to

use payment card data that

was already stolen

elsewhere.

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#2Put anti-fraud tools to work.

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Be sure you have the basics:

Use an address verification

system (AVS).

Require customers to enter

their three- or four-digit card

security code.

Then bring in more advanced

tactics:

Employ automated

transactional risk scoring,

categorizing, and resolution

and post-purchase transaction

management.

Keep your tools sharp!

• Continually review and

adjust your fraud rules and

parameters.

• Fraudsters are always

tweaking their tactics, so

don’t have a one-and-done

mentality.

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#3Know what “normal” looks

like so you can spot deviations.

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For example, look out for

these mismatches:

• Different billing and

shipping addresses when

expedited shipping is

requested.

• Different geographic

locations for IP address and

credit card billing address.

Analyze transaction data during the purchase flow to flag deviations from the norm.

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#4Train your employees to

spot fraud.

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Educate your employees to

understand the risks of CNP

transactions.

Develop internal practices

and policies for monitoring.

Train your team to use

anti-fraud tools and tactics.

But remember, fraud can be

an inside job, so:

• Use real-time screening

that draws on payment

information and anti-fraud

intelligence from external

sources.

• Create a process that

requires another level of

approval for flagged

transactions.

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#5Leverage the expertise of your payment processor

and other service providers.

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You’re not alone in the fight against fraud!

Talk to your payment

processor and bank – they

can share best practices.

Connect to resources such as

fraud prevention services and

software.

Next steps:

• Commit to an ongoing

anti-fraud effort.

• Stay up-to-date on

e-commerce fraud trends.

• Make your prevention

strategy adaptive and

appropriate to your

business.

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Your proactive approach can help limit fraud losses, minimize costs and improve customer satisfaction and confidence – all key drivers of e-commerce profitability.

©2017 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary

of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB

Financial Group, used under license. B-16-15178 Rev. 03-16-17.

SVB’s Global Treasury and Payments Advisors can share more

details about supplier enablement.

Need more information?

Check out SVB’s Payments Trends and Insights page on SVB.com.