15 Steps to Managing E-commerce Risk – continued
9. Protect your merchant account from intrusion
Using sophisticated computers and high-tech smarts, criminals are gaining access to shopping card and payment gateway processor systems, attacking vulnerable e-commerce merchant accounts, and making fraudulent merchant deposits. By taking proactive measures, you can effectively minimize the kind of cyber attack and its associated fraud risks.
10. Create a secure process for routing authorizations
Before you accept Visa cards for online payment, you must ensure that you have a secure and efficient process in place to submit authorization requests through the Internet.
11. Be prepared to handle transactions post-authorization
There are a number of steps you can take to deal effectively with approved and declined authorizations before you fulfill and order. The idea here is to apply appropriate actions that best serve your business and the customer.
12. Safeguard cardholder data through CISP compliance
Visa’s Cardholder Information Security Program (CISP) provides e-commerce merchant with standards, procedures, and tools for data protection. For maximum security, you need reliable encryption capabilities for transaction data transmissions, effective internal controls to safeguard stored card and cardholder information, and a rigorous review of your security measures on a regular basis. CISP compliance can help you protect the integrity of your operations and earn the trust of your customers.
13. Avoid unnecessary chargebacks and processing costs
For your business, a chargeback translates into extra processing time and cost, a narrower profit margin for the sale, and possibly a loss of revenue. It is important to carefully track and manage the chargebacks that you receive, take steps to avoid future chargebacks, and know your rights.
14. Use collection efforts to recover losses
Merchant with chargeback monitoring mechanisms are in a better position to spot excessive chargeback activity, identify the causes, and proactively bring chargeback rates down by applying appropriate remedial actions.
15. Monitor chargebacks
You can often recover unwarranted chargeback losses through a well-thought through collections system.