Our payment methods have changed over the past few years. A lot of this change can be contributed to the advancement of technology. In previous years, if we wanted to purchase something, we had to have cash. We would hand the cash to the physical merchant, who would hand us back our change, in cash. If we wanted to purchase something in a catalogue or over the TV, we would have to send in a check. The process would take weeks, and we would be responsible for balancing our checkbooks. Today, if we want to purchase something, regardless if it is in a physical store or over the internet, we use our credit or debit cards. The cards automatically withdraw the money from our accounts. Although the entire transaction process is more convenient, it also makes the likeliness of fraud and identity theft much easier.
In 2014, there were $16.31 billion worldwide fraud losses from payment card fraud. In 2020, the projected amount of worldwide fraud losses is estimated to be $35.45 billion. Credit card fraud is easier because you no longer need to have a physical check or cash to purchase something. Many transactions are card not present transactions. This means that you never actually provide your card to the merchant. Instead, you enter your credit card numbers into the internet web page or onto the order form. If those credit card numbers fall into the wrong hands, they can also purchase items on your credit card in the same way.
Even with the high risks of credit card fraud, many shoppers are still relying on internet shopping. In fact, in the USA, about 50% of digital buyers are expected to make mobile payments for purchases in the near future. Online shoppers never have to leave the comfort of their homes, and they can price shop and shop a variety of store options online.
Fortunately, card not present fraud prevention exists with many credit card holders. Credit card companies realize the risk of their customer?s using their credit cards for online and mail in purchases. However, they also realize the benefits of allowing them to do this. The credit card gets used more often, and they make more money. This is why they offer their customers card not present fraud prevention.
This simply means that your credit card company is likely to cover any fraud expenses from credit card fraud. When you use Ecommerce to shop, you will be protected, even when you provide card not present transaction information. The credit card company will not only protect you during credit card fraud, they will also monitor your account. The monitoring checks for unusual card activity and notifies you when they notice any. This protects your card and your account. It also protects them, with the intent of preventing the use of your credit card by unauthorized people.
Many people still prefer to use credit cards during their payment processing options. If cash is lost, it cannot be replaced. However, if a credit card is lost, the account can be frozen and the card can be replaced. Even with the risks associated with credit cards and Ecommerce, people will continue to shop online and to provide their credit card information over the internet when they have card not present fraud prevention.
Online shopping has led to a change in the way that we pay for things. People no longer use cash for purchases. Instead, they use their credit cards because they are protected with card not present fraud prevention. Most credit card companies understand the risks of Ecommerce shopping and because of that, they offer card not present theft protection. Credit card users can feel comfortable using their credit cards during online shopping. They may have their information stolen, but hopefully the credit card company notices prior to any purchases being made.
