Every year merchants lose money because their shopping cart for selling downloads is not as secure as it could be. Some online vendors may be working with outdated systems. Other sellers may not be aware of the fraudulent transactions that can take place on their site. By the time they realize there’s a problem, it’s too late. Selling downloads doesn’t have to be a risky business if you monitor your transactions and use a secure shopping cart system.

A Serious Problem

LexisNexis Risk Solutions studied the fraud business and found that retailers lost $139 billion to fraud in 2009. In the past four years, the situation has improved but not substantially. CyberSource’s 2012 Online Fraud Report states that overall in 2011 there was a 33 percent decrease in online fraud. Still, 60 percent of online merchants believe that friendly fraud has increased in the past two years. The battle to protect online business rages on.

Friendly Fraud

Here’s an example of what can happen: A customer uses a credit card to order one of your products, and you gladly make the transaction. Once the download has been made, the customer contacts his credit card provider and issues a chargeback. Unless you can prove the delivery was completed, the crime will go unpunished. You wind up footing the bill for the fraud.

Protect your business

Protect yourself and your business. Before you acquire a checkout system, check the security features offered. Look for a shopping cart service that tracks deliveries for you and captures information vital to proving the transaction was completed. Gathering customer card information alone may not be enough to win the battle against friendly fraud.

Using the security code on the back of the credit card helps show the transaction took place; however, it doesn’t show the customer received the requested download. Some merchants have a control option within the download itself. Digital subscriptions, items requiring logins and updates, usually have these controls. The company database is connected to the use of the product so service can be terminated if necessary. This helps mitigate fraud; however, the vendor is still responsible for any fees associated with the chargeback.

Your best bet for safe and secure transactions is to look for a service that prevents unauthorized transactions and incorporates a system to verify authorized transactions and product delivery.

A thorough search on the Internet will lead you to PayLoadz.com, which has the expertise to help you in your battle against online fraud. PayLoadz.com’s years of experience providing digital delivery services have proven its ability to offer secure transactions for clients. Once you secure your shopping cart for selling downloads, use a secure product delivery system.

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