First of all, what is a chargeback? What function does it perform in your eCommerce? How does it affect your business? Which are the most recurrent? We will tell you all this and much more throughout this post because the chargeback ratio is a perfect indicator to evaluate the security in the data management of your online store. Join us and don't miss it!
It is a return made by the responsible bank at the request of the cardholder to request a refund. Usually, it is done because you do not agree with the charge. However, the big question in eCommerce is how to avoid it? The answer lies in keeping a close eye on your finances. Over the years, it has been shown that credit card fraud is on the rise, so it's important to have secure tools capable of diagnosing any risk or failure.
When a consumer detects a purchase on their credit card that they do not recognize, they can refuse it by contacting the financial institution. However, eCommerce must be protected against chargeback fees, either by adopting a transparent payment policy, by having a good anti-fraud system or by having secure payment gateways.
We often encounter numerous chargebacks that affect the operation of our online business. The most common are:
Keep your business safe!
According to data published in the Autónomo Digital, "the figures of fraud with bank cards issued in Spain have been increasing in recent years". Some data from the Bank of Spain show that "in 2016 there were 880,000 fraudulent operations involving a total of 56 million euros". Furthermore, "the victims of these identity frauds are not only individuals, but also online shops".
Surely, if you run an eCommerce website, reducing fraud is one of your main goals. Fighting it must be a constant task that must be implemented with a fraud control system that can detect and stop it. That's why it is essential to have completely secure payment gateways. In the information age, the storage and management of personal data has become a matter of particular interest for e-commerce.
The threat to user privacy and security is a reality, which is why the PCI DSS regulation, or the Payment Card Industry Data Security Standard, was created, which regulates the management and storage of data associated with people's payment cards. All businesses that manage or store data associated with payment cards of individuals must comply with the regulations.
To this end, tokenization has been implemented. This is a system through which a numerical combination associated with a customer's confidential data is associated and replaced. This process consists of two phases: encrypting sensitive data and assigning a token to the encrypted data.
Apply the best tools to optimise your finances to your eCommerce and discover different ways to get the most out of your business!
Decreasing chargebacks is a guarantee of security for your business. They are the great nightmare of many online businesses, especially when it comes to fraudulent returns.
The Payment Card Industry Data Security Standard (PCI DSS) sets out the requirements for compliance organised into the following sections: developing and maintaining a secure network, protecting cardholder data, maintaining a vulnerability management program, implementing strong access control measures, monitoring and regular testing of networks, and maintaining an information security policy.
Security in payment methods is essential and the regulations arise from the increase in cases of payment card fraud, which triggered the alarm in the security of transactions. As a result, a security standard was created primarily aimed at reducing payment card fraud and increasing data security through infrastructures to protect the processing, handling and storage of credit card data.
Do you have a payment gateway free of chargebacks? Are you doing something to increase security in your eCommerce? Keep your data safe and ensure the success of your transactions!