Black Friday and Cyber Monday will boost online sales, but at a false lower price – Digital Transactions
Shoppers have flooded online shopping sites in response to the pandemic, and now stores expect another boon in online sales as consumers flock to sites for Black Friday and Cyber deals. Monday. But while these two annual shopping extravagances will boost sales, they’re also likely to have a big downside: fake drops.
Legitimate transactions rejected on suspicion of fraud will total $ 682 million among U.S. traders this Friday and the following Monday, according to estimates released this week by consulting firm CMSPi.
“This is a major issue with customers going online on Cyber Monday,” Toby McFarlane, ecommerce manager for CMSPi, said in a statement. “Retailers are missing out on a substantial amount of sales and risk losing customers if their payment is refused. In this competitive retail environment, it’s more important than ever for merchants and the supply chain to work together more productively to ensure all non-fraudulent customer payments are approved.
A false rejection, or false positive, occurs when fraud detection technology mistakenly identifies a legitimate transaction as fraudulent, causing merchants to reject the sale. This technology has improved in recent years with the advent of more sensitive detection, as well as standards like EMV 3-D Secure, based on specifications from the global standards body. EMVCo.
But the problem can become worse when systems are inundated with new sales, especially from consumers who may never have purchased certain stores or markets before. The false decline problem affects all online sellers, but digital content merchants are particularly vulnerable due to the need to instantly send the product to buyers.
Merchants can request an alternate payment method if they are declined, but many are concerned that the customer will simply abandon the sale.
For Friday, CMSPi estimates that the volume of false declines will total $ 314 million, while Cyber Monday’s toll will rise to $ 368 million.