Regular readers of CardNotPresent.com are aware of the many ways their online businesses can be affected by fraud and chargebacks. Many businesses, however, especially smaller merchants or those entering e-commerce for the first time, must learn some hard lessons before they understand they must enlist help in the face of the increasing number and sophistication of fraud attacks. It’s worth keeping these lessons—and the potential stakes—in mind at this time of the year, which, for many retailers, is their busiest.
A story posted on Sunday on the Website of Canadian national news outlet CBC detailed the shuttering of a promising Montreal-based e-commerce merchant after a $50,000 loss due to fraud. The owner of the company blames his bank, according to the story, but given the rules in place in most places for e-commerce fraud liability, the real lesson is the necessity for owners or e-commerce managers to arm themselves with the most recent information available.
Since the migration to EMV began in the U.S., card-not-present fraud has received a higher level of attention in major media outlets, which have begun trumpeting the message CNP experts have been trying to communicate for several years: e-commerce fraud is bad and it’s getting worse, but the tools exist to effectively protect your business.