Transaction Denied: E-Commerce Risks for NFPs
Does your not for profit organization have an online store? Selling your merchandise or products online can enhance customer relationships, attract new contributors and increase much needed revenue. But, as always, risks are everywhere especially online with the rise of cyber-attacks. It’s important to understand what’s required to maximize information security and minimize credit card payment risks.
Organizations handling transactions online should consider these 4 common risks:
- Account information theft by hackers
- Account information theft on site
- Customer disputes and chargebacks
So, what are chargebacks? They’re transactions that are returned as your financial liability, and they translate into extra processing time and cost in addition to possible loss of revenue. They occur when there are customer-disputed transactions, fraud, authorization issues, inaccurate or incomplete transaction information and processing errors.
To avoid customer chargebacks, it’s up to the e-commerce merchant to apply the right tools and controls to verify the cardholder’s identity and the validity of the transaction. When used efficiently, these systems can reduce fraudulent transactions and the potential for customer disputes:
- Address Verification Service checks a credit card holder’s billing address with the issuer, providing merchants with an indicator of the validity of the transaction.
- Card Verification Value numbers are printed on the back of credit cards and can help ensure that the customer is in possession of a genuine card.
- Fraud Screening examines transactions and calculates the level of risk associated with each transaction, providing merchants with risk scores.
Be sure your staff is aware of the risks of credit fraud and chargebacks. They should know the chargeback rules and regulations that your provider uses and be well-versed in your risk management policies and procedures.
To learn more ways to minimize risk in your not for profit organization, chat with a member of the ‘A’ Team.
- Don’t Put Your NFP at (Cyber) Risk
- Protect Your Clients’ Business and Personal Info
- The Anti-Social Advantage
- Cyber Liability E-Book
- Not For Profit Blog
- Not For Profit Industry Page
- Not For Profit Webinar Replays
- Not For Profit Library
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