Losses can extend far beyond the value of the goods lost due to fraudulent purchases. If fraud management is not properly handled, high levels of unauthorized purchases or lengthy analyses can lead to lost sales, lost shipping costs, loss of any marketing investment, the cost of representing chargebacks, an adverse effect on the merchant’s image and, most importantly, lost customers.
Merchants may not realize that transactions can be declined for the smallest of errors. This may lead to loss of immediate revenue from the purchase or, more importantly, the loss of a future loyal customer. As data breaches and fraud attacks increase, security restrictions are becoming tighter. The need for hands-on fraud management for every merchant is vital.