Many companies today are getting into the habit of using an identity verification service to ensure the safety of their customers and keep themselves from being the victims of fraud. Even the IRS has gotten into the act, sending out 5071C letters to people whose tax return forms look suspicious. There are many reasons why using this sort of service makes good sense. If you own a company and want to do things the right way, verifying the identity of the people you're working with is a good start. Here are some things to think about as you consider whether this service is necessary.
How often do you process online payments?
Identity theft is the fastest growing crime in the modern world. People often have their credit card numbers stolen without even losing the card. With all the technology out there and the uncertainty of how laws cross over international borders, people the world over are able to rob others blind with online purchases. If you sell something online, then it might be a good idea to perform identity verification checks. This can help you keep customers safe.
Are you concerned about the expense of friendly fraud?
Friendly fraud occurs when a person makes a legitimate purchase, then claims their card was stolen or the purchase was unauthorized. When this happens, their bank or card issuer will come to you and ask for proof the purchase took place. If you didn't use an identity verification service, you may have the money forcibly removed from your account by the bank. In doing this, the customer will get both the product and their money back, leaving you holding an empty bag. Worse than that, you will incur a fee and even experience a strained relationship with your credit card processer if you have too many chargebacks. When you use a verification process, you can also deter this type of behavior because customers will know they'll never get away with it.
Would two-factor verification be an impediment to your retail process?
Smart companies have started something called two-factor verification. This means that before they can make a purchase, they have to confirm it through both the computer they're using and their cell phone. Your system would send out a verification code the person would then enter into a website. This thwarts hackers and thieves, saving you money and protecting your legitimate customers. The downside is that it complicates the purchasing process, giving your customers another excuse to abandon their shopping cart. You must analyze just how important efficiency and quickness is to your sales conversion strategy.
Most companies could benefit from using an identity verification service as long as they're prepared to deal with the costs. In truth, the back-end costs of not using this type of service can be even worse than the initial costs you'll incur by putting systems into place. Don't you want to do everything in your power to protect the people who shop with you from fraudulent behavior?
