The holidays are here and we are headed straight into the busiest and most profitable time of the year. Last year, Australians spent $48.1 billion in the lead up to Christmas, and this number is set to rise. But, unfortunately, not all of your customers are on Santa’s nice list – holiday fraudsters will be on the prowl, impacting your bottom line with holiday chargebacks. In fact, research from the Australian Payments Network has revealed there were 2.7 million fraudulent transactions in Australia during the 2015/16 financial year. A comprehensive, layered fraud prevention is key to protecting your hard-earned holiday profits. But merchants will have to go beyond just a firewall if they want to benefit from the strong sales forecast.
Nightmare before…and after Christmas
Friendly fraud is rampant during the holiday sales rush. Merchants can expect a 50% increase in holiday chargebacks as some shoppers rush to purchase gifts for family and friends and later encounter buyer’s remorse. This year, we published new tips on keeping friendly fraud at bay during the busiest selling season of the year.
Chargebacks are often viewed as a cost of doing business, and many merchants believe there is nothing they can do about chargebacks. Nothing could be further from the truth. Aggressively preventing chargebacks from occurring and recovering funds lost to chargebacks should be a priority for every merchant, as there are many costs associated with chargebacks. Being aware of some of the key indicators to identify ‘friendly fraud’, for example, is one step you can take to be on the lookout for fraudulent behaviour.
Given recent data breaches, the risk of true fraud chargebacks is also elevated. Stolen data becomes available on the dark web and fraudsters can use the busy holiday to their advantage, racking up fraudulent purchases, which result in chargebacks later on. There are quick fixes you can make to avert some of these chargebacks, but a total chargeback management solution is key to protecting your business and improving your bottom line.
Finish the year off strong
By implementing end-to-end fraud and chargeback management and prevention strategies, and optimising all channels to meet consumer expectations, merchants can expect to have a strong selling season. The evolving – and lengthening – holiday selling season will have impacts on both card-present and card-not-present commerce, so merchants should be analysing how this holiday season unfolds to better prepare for next year. Sales predictions look strong, which bodes well for merchants’ bottom lines. Properly safeguarding payments will require comprehensive fraud management that effectively does its job without hindering legitimate sales.
Contact us today to learn more about how merchants can implement a multi-layered fraud protection solution that provides extended protection beyond tokenisation.