E-Commerce Transaction Risks That HomeATM Solves

E-Commerce Payment Transaction Risks Solved By HomeATM's Innovative ePayment Solution

Most eCommerce credit/debit card transaction risks fall into the following categories:

Fraud. Fraud usually occurs for one of the following reasons:

• A criminal uses a stolen card or account number to fraudulently purchase products or services.
  
• A family member uses a card to purchase products or services without authorization.
• A customer falsely claims that he or she did not receive a shipment.
• Criminals hack into an eCommerce merchant's payment processing system and issue credits to their card accounts. 

Virtual Account Information Theft: Card account information can be stolen in the virtual domain in a number of ways but most typically:

• Hackers capture card account information during transmission between the merchant and its acquiring bank.
  
  
• Hackers gain access to merchant services provider's payment processing system and steal customers' account information.

Physical Account Information Theft. Card account information can be stolen from physical sites as well:

• Criminals gain access to and steal cardholder information from a merchant services provider's site and use it for fraudulent transactions.
  
  
• A merchant or a merchant services provider's employee steals cardholder information and uses it for fraudulent transactions.
  
  
• Cardholder information is stolen from trash bins at merchants' or merchant services providers' locations containing unshredded account information.

Customer Disputes and Chargebacks. Customer disputes and chargebacks are among the biggest risk factors for eCommerce merchants.

•   Products or services are not as described on the website.
•   A customer is billed before the product is shipped or the service provided.
•   There is a disagreement or confusion between the merchant and the cardholder regarding a return or a refund.
  
•   A customer is billed twice for the same order or is billed an incorrect amount.
•   A customer does not recognize the merchant's name on his or her credit card statement.
•   Products or services are billed without customer approval.

Fraudulent transactions involving unauthorized use occur when stolen cards or account information are used to purchase products and services. The cards and account numbers are legitimate but their use is not. Typically, fraud in card-not-present environment involves purchasing high-priced items that are easily resold (e.g. electronics, jewelry, etc.).

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