So far, 2016 has been good for online sales. In American Express’s 2016 Digital Payments Security Survey, while 70 percent of U.S. merchants said their e- and m-commerce sales are up this year, fraud remains top of mind for both consumers and merchants. Nearly half of consumers who shopped online in the past 12 months have experienced some kind of fraud and 42 percent said they have abandoned an online purchase because they were concerned about the security of the site. At the same time, 60 percent of merchants reported they had experienced some fraud on their online sales and 25 percent said they had more fraud in the last 12 months than in the year prior.
According to the report, however, there are specific steps merchants can take that consumers will, by and large, accept. Seventy-eight percent of online shoppers are willing to enter a CVV code, while only 57 percent require it on their e-commerce sites. More than two-thirds of consumers polled said they would be willing to create a one-time password, while only 37 percent of merchants utilize this authentication method. Consumers also indicated the presence of easy-to-find customer service contact information (84 percent) and visible security cues (78 percent) would engender trust in a Website, but only 50 and 52 percent, respectively, offer those features.
“Payment fraud can impact a merchant’s bottom line,” said Mike Matan, vice president of Industry Engagement, Product and Marketing for American Express’ Global Network Business. “Fighting fraud for our card members and merchants is an ongoing priority at American Express. We offer a number of services and features to help card members monitor their account information and help prevent fraud at the point of sale, including one-click alerts to confirm charges via text, email and our mobile app.”