eCommerce frauds result in more chargebacks and less safe purchases.

Sometimes, there is an irrational fear of sharing sales history when hiring a payment gateway and/or new service provider, leading to a loss of opportunities for improvement, safe purchases and growth; driving an increase in fraud if the rules and parameters of the business rate improperly calculated.

Pamela López, Head of Finance at Reservamos SaaS.

The value of Reservamos SaaS in payments outlines in its extensive experience and the use of different control and measurement tools for payment attempts. Each industry, sector, and company presents distinct challenges, so it is necessary to know and create unique rules for each season and type of service to secure safe purchases.

1. The needs, such as processors and anti-fraud systems, may be different. Evaluating possible scenarios and sales history will help adapt the parameters and tools needed. 
2. We monitor the acceptance rate, fraud level, user behavior, and changes in the market.
3. We use machine learning tools as the first review filter and payment processors or aggregators to transact. Sometimes two step-verification when applicable, as long as it does not limit or harm the conversion rate.

There are some concepts and required procedures you need to know if your bus company has an eCommerce platform: 

Chargebacks, what are they, and which are the most frequent?

eCommerce frauds result in more chargebacks. A chargeback is a process where a buyer communicates with the card issuer to be unaware of a transaction or report a problem in search of paying compensation.

There are several types and scenarios of chargebacks. They are usually fraudulent or friendly, for example:

• The cardholder does not recognize the transaction (fraud).
• The cardholder did not authorize the transaction.
• The consumer did not receive the goods or services they purchased.
• The consumer claims that the goods or services do not match the offer.

How payment acceptance impacts sales?

Payment acceptance measures the proportion of purchases accepted in respect of payment attempts.

• Unique payment attempts / Completed purchases = Acceptance rate %

The acceptance level depends on the market and the payment method to be measured. According to information shared by Visa in March 2021, the general acceptance in the payment sector in LATAM was 56%, Mexico was 48%, and Colombia was 49%.

Reservamos SaaS offers a high impact in increasing the acceptance rate and a low volume of fraud.

Many companies make the serious mistake of limiting or lowering their payment acceptance rate because they have 0% fraud. It not only limits their potential for sales growth but denies or blocks a service to users who may not be fraudulent.

Fernando Aguilera, Head of Sales & Expansion.

Understanding the process.

Market and current behavior.

2020 was an atypical year for eCommerce due to restrictions. Goods and services purchases through online platforms increased by +30% globally. As a result, besides boosting the market, the digital market also changed consumer behavior:

1. The purchase frequency becomes difficult to predict. The consumer takes short-term actions to avoid complicated scenarios.
2. Buyers use new payment options and registration.
3. Users search for destinations that were not so attractive before.

In this new market, fraud increased considerably, along with the theft and testing of bank databases, for which it became essential to prioritize specific fields.

The challenges for the coming years are: to adapt and implement new analysis techniques due to the fact that consumer behavior is now more complex and changing. At Reservamos SaaS, we are always looking to implement new tools and parameters that minimize the percentage of chargebacks and increase the rate of payment acceptance to reduce a company’s losses and increase its income.

Do you also want to ensure safe online purchases for your travelers and increase the conversion at your eCommerce? Contact us at: [email protected]