Which Payment Option Can Offer Additional Security Like Fraud Protection?
Choosing between the various payment options available is important. You will want to consider cost and credibility. Aside from that, you will also want to look for extra security like fraud protection. These features are important when you’re using the internet to make purchases. Listed below are some of the options you can choose from.
Fraud protection services are a great way to ensure your personal information is safe and protected. While they can’t guarantee 100% fraud protection, they do actively monitor your personal information to detect signs of fraud and alert you in real-time so you can act fast to mitigate the damage. Fraud is on the rise, and in 2020, 47% of American consumers will be victims of financial identity theft. In addition, younger people are twice as likely to suffer from fraud than older individuals. By 2021, there will be a 64% increase in new bank account fraud, according to the same study.
Payment options that offer additional security, such as fraud protection, should include controls that protect against fraud and other unauthorized activities. These measures can range from increased collaboration among banks and PSPs to improved client education. A few examples of controls are as follows: merchant due diligence, suspicious-activity monitoring, and risk assessments. These measures ensure that PSPs don’t put financial institutions at risk.
As with other aspects of e-commerce, companies need to consider financial-crime risks when evaluating their business models and designing products. For example, e-commerce platforms often face the risks of dealing with fraudulent merchants. Because of these risks, PSPs might want to partner with banks that are also dedicated to fighting financial crime.