Safely Approve Consumer Electronics Orders with Different Bill-To and Ship-To Addresses
Fraud is a never-ending danger that constantly threatens online Electronics retailers. With electronics and computers a top 3 target for online fraudsters and criminal gangs, it makes sense to be especially vigilant when it comes to identifying common warning signs of fraud. Although the presence of fraud is not guaranteed, different bill-to and ship-to addresses are a favored tactic of fraudsters.
For this reason, most payment processors recommend extra screening and often suggest additional manual review steps, such as phone or email confirmation. But for online Electronics retailers, these additional processes can lead to:
- Customer friction
- Higher operating costs
- Lost revenue from abandoned orders
- Business lost to competitors
Enterprise-class fraud prevention systems can help avoid these issues for Electronics retailers conducting card-not-present and mobile transactions, resulting in:
- Lower operating costs
- Higher order approval rates
- Higher topline revenue
- Greater overall profitability
Confirm via automation that the order is originating from the actual cardholder. Fraud prevention systems like Kount use multiple, advanced technologies like Device ID, Geolocation, Transaction Velocity, Order Linking and more to validate that the transaction is originating from the actual cardholder—and not some fraudster impersonating him or her (poorly) by using a different device type, IP address, etc. This increases confidence and boosts order approval rates without incurring the additional time and expense from manual reviews.
Automatically check additional data sources on borderline orders. When transaction data alone is not enough to adequately confirm that the order is coming from the actual cardholder, advanced platforms like Kount can automatically query real-time data from third party data sources like Lexis Nexis, Whitepages Pro, Emailage and more to provide additional context. The important part here is that these third party callouts can be done as-needed to keep costs down.
Remember and correlate prior fraud patterns. With AI machine learning, Kount’s fraud prevention platform can exploit Big Data by identifying variables associated with previous fraudulent transactions. This can help automate declines to avoid chargebacks and product loss.
Recognize good customers and their preferences. Advanced fraud control systems like Kount can “recognize” when different ship-to addresses are legitimate – for example, a different ship-to address that was confirmed as legitimate via previous orders – and use a rules-decisioning engine to quickly approve orders. And it can automatically approve orders using pre-defined rules, for example, when product is shipped to a relative of the cardholder (an iPad sent from parents to their daughter away at college).
All of these advanced fraud fighting capabilities increase the ability of online Electronics retailers to quickly and confidently approve orders that have different ship-to addresses, increasing customer satisfaction, boosting sales, lowering costs…all while beating fraud.
Want to successfully ship more orders – even when the recipient’s address differs from the person placing the order? Explore more in the eBook “7 Fraud Myths that Cost Online Electronics Retailers”.