Decline Fraud Before It Gets To Checkout This Thanksgiving

Fall is upon U.S., signaling businesses to plan for one of the busiest time of the year-the holiday season. Halloween day has just passed and merchants are aware that Thanksgiving Day is just few days away, marking the craziest and most challenging time of the year in retail. The thanksgiving weekend sales extend through Cyber Monday and revenue procured from it alone constitutes a major portion of yearly revenue for businesses.

How Vulnerable Is Your Business?

The online holiday shopping revenue (November-December) is predicted to reach $124 Billion in 2018. During this gift-giving time, holiday fraud will hinder potential revenue boosts giving businesses the real threat of chargeback and friendly fraud. Digital fraud has raised dramatically, with extensive amount of personal data available from a cascade of global data breaches and fraudsters getting more sophisticated in the technology they deploy.

The boon in sales during the holiday months is vital for merchants in logging a successful year for targeted revenue. This fun and frivolity of the holiday season is often followed by the post-holiday blues wrapped as fraud such as gift card fraud, identity theft and friendly fraud resulting in loss of merchandise, customer trust and jeopardized data. Merchants need to be prepared to tackle both the volume of sales and fraud threats.

Un-wrapping the Gift of Fraud

It is imperative for organizations not to get caught up in the cheer of Thanksgiving and forget what happened in 2017. This holiday season, business’ fraud prevention strategy must be multi-faceted, incorporating identification of blind spots from what they experienced in 2017.

  • Sales during Thanksgiving Day reached $1.2 Billion in 2017
  • In 2017, between Thanksgiving Day and December 31, the number of e-commerce transactions grew by 19%.
  • 2017 Thanksgiving Day witnessed highest fraud attempt rate, approximately 1.94%.
  • Thanksgiving was the highest day for mobile sales at $624 Million in 2017, with the highest average order value.
  • 83 % of shoppers will use their smartphones in-store
  • Online spending continues to grow & is predicted to account for 57% of all purchases.
  • Thanksgiving Day online revenue was up by 30% in 2017

Cracking Down On Fraud with QPS

The alarming uptick in e-commerce sales and fraudulent activities on Thanksgiving is a signal that merchants must be proactive in their efforts to identify discrepancies across the Omni-channel payment process. Organizations need to find a balance between preventing the multi-billion dollar problem of card-not-present fraud and maintaining friction-free and consistent customer experience. Defining advanced fraud detection and prevention solutions will help businesses improve security, increase revenue and enhance customer experience.

Team QPS has been helping businesses deal with increasing fraud threats during the holiday season with its advanced chargeback management approach integrated with artificial intelligence (AI) & Open API. The above statistics corroborate QPS’ commitment and capability to prevent fraud and enhance sales and ROI.

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