Detecting and preventing credit card fraud to maximize profits while minimizing operational costs is very challenging for online merchants. Online credit card fraud is a major threat to e-commerce businesses. It is important to stop online fraudsters during the checkout process. While fraud risk is something every online merchant is prepared for, using a tool like IP2Location IP Geolocation and FraudLabs Pro can help to mitigate the risk and keep it to a manageable level.
Why is credit card fraud detection through IP geolocation important?
Many online merchants who are running ecommerce businesses are not limited to a particular geographic boundary. For online scammers, one of the biggest advantage is the ability to stay anonymous, which means they can target any enterprise from anywhere in the world. In most cases, online merchants are not able to find out where the crook is from, and usually the crime is discovered after it has been committed, so it cannot be prevented. Fortunately, IP2Location IP Geolocation is a cost-effective and predictable tool that can be applied to all online credit card transactions so that any fraudulent ones can be detected and eliminated.
Credit card fraud will likely to persist as long as online e-commerce exist. However, if IP geolocation data is added to a fraud prevention platform, large number of fraudsters can be stopped. At the same time, operating losses will be reduced and orders will not have to be wrongly rejected. An online merchant’s bottom line is likely to rise significantly.
How does IP2Location IP geolocation work?
Geographic location of a device from which someone has placed an online order can be pinpointed with the help of IP2Location IP Geolocation. Other additional pieces of information are also provided through which the fraud risk of an order can be assessed. Often, anonymizers or proxy servers are also utilized by fraudsters to prevent their true IP address and location from being disclosed.
However, IP2Location Geolocation Solution is able to instantly identify the real world location of web visitor, i.e. which country and city they are from. Online merchants can compare that information with the billing and shipping addresses that a customer provided during the transaction and can take relevant action if they discover any inconsistencies. This way, potentially fraudulent transactions can be flagged, while legitimate customers are not adversely affected.
Privacy is something that consumers are often concerned about. IP2Location IP Geolocation does not compromise, nor does it ever track customer behavior. The geolocation data merely reveals the customer’s city location from where they connected to the Internet and certain connection characteristics.
FraudLabs Pro is the solution to fight online credit card fraud
If you are too busy to implement fraud screening in your shopping cart, you can subscribe to FraudLabs Pro fraud screening service. Online consumers and fraudsters can be located anywhere on the globe. To determine whether or not a credit card transaction is fraudulent, it is integral for an online merchant to be able to pinpoint exactly where in the world a consumer is located. FraudLabs Pro makes that possible as simple as a new module in shopping cart. Merchants can review all orders from an easy-to-use portal.