Black Friday, the biggest shopping day of the year in the US is not just a single day event rather it is observed as a week-long shopping fiesta. Jaw-dropping discounts and attractive offers that no one can resist, make everyone shopaholic. The deals and discounts offered by in store and online retailers attract shoppers across the US driving sharp spike in the payment transactions. As per a leading forecast, Black Friday holiday retail sales will rise by 17.2% touching $5.9 Billion in 2018. You must stay ready to handle this unusual escalation in the number of transaction and associated threats.
Decipher The Sophistication of Digital Fraud
Apart from traditional in-store shopping, holiday shoppers are also predicted to go online and shop through digital channels. Conventionally, Black Friday has always encouraged customers to shop and avail attractive discounts and offers. Higher inflow of online payments using e-commerce marketplace, will pose incremental fraud risks to businesses requiring proactive and additional preparation to accept digital payments.
Following statistics peep into the spending dynamics across both physical and online stores.
– 2017 Black Friday – A Year of Swelling Sales
– 20% higher online sales touching $2.36 Billion as compared to 2016
– 129 Million customers visited online retail sites
– Apparel & Accessories sales ranked top with $600 Million
– Consumer electronics ranked second with more than $500 million sales
Fraud Catalyzing Black Friday Chaos
Online fraud is very different from brick-and-mortar fraud as one cannot see the transactions’ counter-party. This gives leverage to fraudsters to use sophisticated and complex fraud methods. Fraud is a growing concern not only because it causes financial loss but also because it can lead to customer dissatisfaction, revenue leakage and negative reputation.
Payment Decline – The Major Revenue Disruptor
Quite interestingly, a big chunk of merchants decline receiving online orders fearing fraud behind it. Such declines are around 5.5% of their estimated annual online revenue. This contributes to a major leak to the payment funnel without even letting merchants realize that orders are declined without providing an opportunity to receive funds.
Stop Fraudsters From Shopping Your Data & Revenue
High sales volumes throw tough challenges for FI’s and merchants with rising threats like card fraud, ID theft, and data breaches lead to costly chargeback. The best defense for the businesses is being aware of the fraud threats and proactively bolsters the fraud prevention mechanism.
QPS’ 24×7 transaction monitoring for effective fraud detection and prevention and secure payment processing will provide a multilayered fraud defense to businesses. Solutions integrated with artificial intelligence and human eye review ensures frictionless shopping experience for your customers.