The scale of fraud and chargebacks by cardholders is increasing, resulting in unwanted business overheads. It’s vital to be wary of various types of scams and ways to prevent this.
There are concerns that the scale of fraud and chargebacks by cardholders is increasing since the Covid-19 pandemic, resulting in unnecessary business overheads.
Using Azupay’s single-use PayID, significantly reduces the likelihood of chargebacks and payment fraud. Plus, for the consumer, no personal information will be transferred to any third party.
Fraud
We’ve all heard stories of fraud, whether it may be online shopping, paying invoices or credit card scams.
According to Australian Payments Network (AusPayNet) statistics, Card Not Present (CNP) accounted for 87% of card fraud and continues to account the majority of payments fraud. Invoice fraud also continues to be an issue as opportunistic scammers successfully manipulate invoices to redirect payment.
According to ACCC, Australians lost over $851 million to scams in 2020. The top contact methods by ACC reports show that 6.3% are from the internet, resulting in $26.7 million lost.
What types of fraud are there?
Credit card fraud:
- Card-not-present (CNP)
- Counterfeit and skimming
- Lost and stolen card
- Card-never-arrived
- False application
Invoice fraud:
- Invoices for office supplies
- Subscription invoices
- Domain names
- Business travel
- Good/services your business did not order
- Account tampering
Chargebacks
As online shopping continues to explode during the pandemic, so to the rate of chargebacks. This places additional cash flow and liquidity pressures on many businesses.
What is a chargeback?
Chargebacks cost merchants time and money. A successful chargeback involves a consumer’s bank applying to a credit card scheme (ie: Visa or MasterCard) and asking to reverse charge a transaction. The consumer’s card issuer can dispute a transaction for them with the merchant’s financial institution, resulting in a charge back.
With Azupay, your payments will be faster, safer and smarter. Contact our expert Sales team and end fraud and chargebacks now: [email protected]
