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Online Card Payments: Fraud Solutions Bid to Win |
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Internet auction sites and other online consumer marketplaces have been hit hard by fraud but are using technology to reduce their fraud losses. Although many sources report alarmingly high rates of fraud, most of these cases are more closely related to mail fraud than to payment fraud. Our research shows significant reductions in fraud rates since the last time we looked at this topic, due to better than expected usage rates, improved solutions, and more awareness of the threat of card fraud to Internet merchant profitability. As Internet purchasing continues to grow, we expect that credit and debit cards will continue to be the payment vehicle of choice in consumer purchases, despite growth in person-to-person payment options. Although there are many initiatives to increase security with Internet-initiated payments, we expect that fraud detection solutions will continue to be the primary solution element for Internet merchants. With continued deployment and development, fraud rates for Internet-initiated transactions could reach the level of card-not-present transactions, such as mail-order and telephone-initiated transactions
http://www.meridien-research.com/Abstracts/MERePayments/ep_v4r3.html |
