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>> Marketing >> Simple Steps For Fraud Prevention and Gaining User Trust
Current statistics show that e-commerce in online sales
accounts for only 1% of the total retail sales in America.
Surveys have shown that consumers still fear online fraud
and consider this the number one reason they do not shop
online, if they do not already do so. Fraud on the
Internet is more common than offline, but current
statistics show it only accounts for 1.14% of all
transactions online (IT advisory from Gartner published
November, 2001).
What can be done to quell the fears of potential customers?
Chances are that, alone, you can't do much to fix this
situation. Major banks, credit card companies, and online
security organizations are rolling out big plans for fraud
prevention measures. Until they reach a consensus and find
a common solution instead of individual ones, things aren't
going to improve anytime soon.
Despite this, there is something the average Webmaster or
e-commerce site owner can do. Measures already in place
and commonly used are a very good beginning towards this
unilateral security utopia the banks hope to achieve. The
five steps outlined below will get you on your way towards
higher sales and safety on your site.
1) Inform your customers of their rights, your policies,
and other important facts. Make sure that somewhere on
your site they can find a copy of your privacy policy,
terms of service, returns policy (more on that below),
security measures in place, etc. You may also want to tell
them that some credit card companies such as Discover,
MasterCard, and VISA exempt customers from paying ANY
online fraud charges to their card. All credit companies
are required to charge-off (not charge the customer) at
least $50 of any fraud charges to their account.
2) Give an air of professionalism on your site. If your
site looks hokey or amateurish, you won't get customers to
buy from you. Those that do may feel a bit squeamish about
it unless they know you personally or have some other
outside reason for trusting you. Avoid these problems by
having a professional, clean, and well-maintained site.
3) Secure Socket Links and 3rd Party Verification should
be used in all information transactions that involve
sensitive data. Someone sending you his or her credit card
number, home address, or other personal information should
be able to do so through a secure link from his or her
browser to your server. Secure Socket Links can usually be
set up by your site administrator and 3rd Party
verification can be gained from Verisign™ or Thawte®. This
verification shows that someone else has looked at your
procedures and has verified that your business is
legitimate.
4) Phone or email to verify large purchases before
shipping. If the average sale through your site is $32 and
someone makes a purchase for $300, you should go an extra
step to verify that person. A simple phone call, email, or
other personal communication with this customer will show
them that you are looking out for their safety. I made a
purchase of $480 using my PayPal™ MasterCard debit card and
received a phone call within two hours from PayPal™ to
verify that the purchase was intentional. It surprised me,
but I feel much better about using that card to make
purchases now.
5) ALWAYS accept reasonable return and refund requests.
Deal with them promptly and professionally, no matter how
the customer acts towards you during the process. Refund
only the amount you feel comfortable giving and ALWAYS
refund in the same way they paid (e.g. credit their credit
card account rather than send a check). It may seem a
hassle, but this activity and the informing of your
customers that you are willing to do this instills a lot
of trust. I know that, personally, my biggest fear in
ordering something online is that I may not get what I want
and may not be able to return it.
If you follow these steps and consult with a web
professional about your site's needs for security, you will
not only help yourself avoid problems, but you'll show your
visitors and customers that you mean business! Literally!
For more information on security information, I suggest
visiting www.secinf.net. Just about every book, white
paper, and article written on security issues is available
there.
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