In recent years, the world has seen an exponential increase in online shopping. With the ongoing pandemic, online shopping has become the norm for many people. However, with the increase in online shopping, there has also been an increase in payment fraud. Fraudsters have found innovative ways to scam online stores out of their money, leaving businesses at risk of financial loss.
To prevent payment fraud, online stores need to have velocity checks in place. In this article, we will discuss why online stores need velocity checks to prevent payment frauds.
What are Velocity Checks?
Velocity checks are measures taken by online stores to monitor transactions made by their customers. These checks are designed to identify and prevent fraudulent transactions that could lead to financial losses for the business. Velocity checks analyze various factors such as the frequency of transactions, the size of transactions, and the location of the transaction. By analyzing these factors, online stores can identify and prevent fraudulent transactions.
Why are Velocity Checks Necessary?
Preventing payment fraud is essential for the survival of online stores. Fraudulent transactions can lead to significant financial losses for the business. In addition, payment fraud can damage the reputation of the online store, leading to a loss of customer trust. Velocity checks help to prevent payment fraud by analyzing transactions and identifying potential fraudulent activity. By identifying and preventing fraudulent transactions, online stores can protect their financial resources and maintain their reputation.
Identifying Fraudulent Transactions
Velocity checks help to identify fraudulent transactions. Fraudsters often use stolen credit card information to make purchases online. They may make multiple purchases using the same stolen credit card information. By analyzing the frequency of transactions, velocity checks can identify when multiple transactions are being made using the same credit card information. This helps to identify potential fraudulent activity and prevent financial losses for the business.
Velocity checks also help to prevent unauthorized access to customer accounts. Fraudsters may use stolen login credentials to access customer accounts and make unauthorized purchases. By analyzing the frequency of login attempts, velocity checks can identify when multiple login attempts are being made using the same account credentials. This helps to identify potential unauthorized access and prevent fraudulent transactions.
Protecting Customer Information
Velocity checks help to protect customer information. Fraudsters may attempt to obtain customer information such as credit card numbers and login credentials. By analyzing the location of transactions, velocity checks can identify when transactions are being made from suspicious locations. This helps to prevent fraudulent transactions and protect customer information from being stolen.
Maintaining Customer Trust
Velocity checks help to maintain customer trust. Customers expect online stores to protect their information and prevent fraudulent activity. By implementing velocity checks, online stores can demonstrate their commitment to customer safety and protect customer information from fraudulent activity. This helps to maintain customer trust and ensures that customers continue to shop with the online store.
Fraudlabs Pro Velocity Check Rules
Fraudlabs Pro, the most trusted fraud protection and prevention solution provides its service to tens of thousands of online stores and has made it very simple yet effective to manage velocity checks using its simple interface. They have provided all the important velocity rules that you can activate and deactivate with just a single click depending on your customer base.
It allows you to put checks on Amount, Quantity, and Transaction type based on frequency, timeframe, region, card type, customer information, and much more, all via a straightforward and innovative interface.
In conclusion, velocity checks are essential for preventing payment fraud in online stores. Fraudulent transactions can lead to significant financial losses for online stores and damage their reputation. Velocity checks help to avoid fraud payment by analyzing transactions and identifying potential fraudulent activity. By identifying and preventing fraudulent transactions, online stores can protect their financial resources and maintain their reputation.
Fraudlabs Pro velocity check is also helping online merchants prevent unauthorized access to customer accounts, protect customer information, and maintain customer trust. All the merchants who have signed up for the service have said if would be better if they’d acquired velocity checks fraud protection service earlier so that they could’ve saved thousands of dollars lost in payment frauds. It turns out to be one of the most essential services that online stores should implement as soon as possible.