The Clearsale Blog

Fraud in Fashion: Takeaways from Fashion Digital Los Angeles

Fraud in Fashion: Takeaways from Fashion Digital Los Angeles

In today’s market, fraud management needs to be on every e-retailers mind.

Fraudulent transactions are at an all-time high due to EMV adoption, implementation of digital wallets, and account takeovers as result of continued large data breaches and cyber attackers moving to the cloud. However, there's another important cost that sometimes people forget about: the false declines due to suspected fraud. They already cost US merchants $118 billion per year, and given the uncertain times, that cost may be on the rise.

Specifically in the fashion industry, including designer clothing, shoes and handbags, fraud attempt frequency and attempted fraud amounts rose in 2015, and that number is not predicted to go down any time soon. Merchants in this industry need to put fraud management at the top of their list.

Chargebacks can be very dangerous for merchants, and the costs can be high

A chargeback occurs when a customer disputes a charge on his/her credit card bill.The reasons that a chargeback could be files range from clerical error, customer dissatisfaction, not recognizing a purchase, or fraud. When a customer feels that they have been charged for something they shouldn't have for one the reasons above, they can file a dispute with their bank or credit card company, which begins the chargeback process. The merchant then has the opportunity to answer the dispute and provide proof that the order was filled correctly. This process can cost merchants not only in the chargeback amount, but the merchant will also incur chargeback fees, regardless of whether or not they won the dispute.

If a merchant has high chargeback rates and orders being declined due to suspected fraud, the company may be at a high risk for being denied processing or being put on a high-risk list. A fraud management process needs to be implemented, or if the merchant has one in place, it needs to be re-evaluated for the company’s needs.

Download Credit Card Fraud eBook

Finding a Fraud Management partner that fits your needs is vital

Some important questions to ask when researching a fraud management company… is the solution you are considering able to:

    • Handle my customers with care and give extra care to VIP customers?
    • Deal with different delivery time categories?
    • Work with the specifications of transactions coming from different parts of the world (custom fields, different time zones, different languages, etc.)?
    • Deal with orders coming from different profiles (wholesale, retail, special occasions, etc.)?
    • Align the goals and needs of each of the involved departments/partners of your business?
    • Provide all the relevant reports to track results?
    • Provide information that is transparent (approval rate and chargeback rate)?
    • Be flexible with costs according to my sales (no fixed costs)?
    • Provide a process with predictable costs?
    • Handle the chargebacks that might occur (financial health)?

If it is time for you to pursue a fraud management partner, consider leveraging a customized, outsourced fraud protection program with a partner like ClearSale in order to boost sales growth, allow you to focus on your core business, and give you the freedom to sell. Contact us today to learn more: contact@clear.sale.

You may also like

Industry Trends 2020 and Beyond: Home Goods Ecommerce

Industry Trends 2020 and Beyond: Home Goods Ecommerce

Most of us are home a little – or a lot – more nowadays. As a result, home goods merchants have found themselves in the midst of a major industry shift, with more and more consumers turning to..

Industry Trends 2020 (and Beyond): Cannabis and CBD Ecommerce

Industry Trends 2020 (and Beyond): Cannabis and CBD Ecommerce

As more U.S. states legalize marijuana, cannabis and CBD retailers are taking advantage of expanded opportunities to reach new customers, including the creation of online dispensaries.

While..

Industry Trends 2020 and Beyond: Fitness and Sporting Equipment

Industry Trends 2020 and Beyond: Fitness and Sporting Equipment

The COVID-19 pandemic has given sporting goods and fitness ecommerce a significant boost. With more people working from home than ever before and potentially staying in some sort of remote working..

Firearm Market Trends to Have in Your Sights

Firearm Market Trends to Have in Your Sights

For retailers of all kinds, 2020 has been either a boom or a bust year. Stay-at-home orders kept brick-and-mortar shop owners out of their establishments and slowed foot traffic to a crawl...

Ecommerce Trends in the Cosmetics Market

Ecommerce Trends in the Cosmetics Market

Mirror, mirror on the wall, what’s the biggest cosmetics market trend of them all? Turns out, it’s ecommerce.

Even prior to the pandemic, health, personal care and beauty customers were shifting..

Fraud Risk Profile for Nutraceutical and Drug Retailers

Fraud Risk Profile for Nutraceutical and Drug Retailers

As people become more conscious of what they’re putting into their bodies, there’s been an increased demand for high-quality supplements and healthful food and beverages. The result has been a..

Jewelry E-Commerce Statistics and Insights

Jewelry E-Commerce Statistics and Insights

Whether worn for cultural reasons or pure ornamentation, jewelry is often anything but practical. And that’s precisely why it’s such a pleasurable purchase. Jewelry is the classic “splurge.” But..

[Industry Profile] Fitness Equipment and Sporting Goods

[Industry Profile] Fitness Equipment and Sporting Goods

Jokes abound in 2020 about working from home, eating all your quarantine snacks and putting on your best Zoom pajamas for online meetings. It might seem that health and fitness have fallen by the..

4 Enterprise Retailers to Watch in 2020

4 Enterprise Retailers to Watch in 2020

In today’s uncertain market, e-commerce retailers are looking for new ways to confidently grow their business. Exploring new sales channels, implementing new delivery methods, and even partnering..

Want to write
for our blog?

Please review our writers' guidelines
https://www2.clear.sale/press/clearsale-guest-blog-guidelines
and then email guestwriter@clear.sale with your pitch!

Subscribe to our blog