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Card Testing Results in Chargebacks and False Positives

Published / by jiukuaiy

Card testing is currently viewed as an effective tactic. Based on a study by Radial, a King of Prussia, Pa.-based omnichannel technology provider, during the 1st quarter of 2017, credit card testing grew two-fold as compared to the same period in 2016.

Card Testing

According to Michael Graff, risk analytics manager for Radial, for fraudsters, turning a profit is associated with finding card accounts that can be used to purchase items that can be turned into cash.

Criminals mainly focus on consumer electronics, gift cards, sporting goods, and jewelry. However, as Graff notes, criminals will target any merchant segment carrying merchandise they think they can resell.

Though criminals favor e-commerce merchants for card testing because there aren’t too many barriers in the card-not-present environment to fraud, card testing is increasingly creating more problem among charities.

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Chargebacks and False Positives

Chargebacks that are caused by card testing can’t just drive up merchants’ interchange fees; they also cause damage to their brand. Consumers who are victims of card tests, as a rule, have a negative opinion of the merchant’s ability to detect and prevent fraud. This can make them take their business elsewhere, as Graff notes. By 2020, e-commerce is anticipated to lose $31 billion to chargebacks.

Graff adds that even if a consumer doesn’t shop with the merchant, he/she can spread a negative opinion of the merchant to others through word of mouth or on social media.

It’s not easy to fight test transactions. When it comes to false positives, to avoid them, Graff recommends merchants to supplement fraud-detection technologies and have human-risk analysts who would review transactions that may fall into the gray area between fraudulent and non-fraudulent transactions.

According to Julie Conroy, research director for Boston-based Aite Group, false positives across all merchant categories in the US made up $264 billion in 2016. The approval rate for card-not-present transactions is 80% – 85%, compared to 97% associated with card-present transactions.

As of 2016, actual fraud losses reached almost 7% of the total cost of fraud and fraud management in the e-commerce business. Dollars lost to false positives made up 19%, according to a study by Javelin Strategy & Research, a research-based advisory firm. Fraud-fighting tools and personnel represented the remaining 74%.

The overall costs attributed to chargebacks, false positives, and fraud management were taking 7.6% of total e-commerce revenue, based on the mentioned study. False positives alone made up 2.8% of that revenue. The research involved 500 e-commerce merchants with $1 million or more annual revenue. By contrast, the toll from chargebacks reached 0.52%.

UK Consumer Spending Suffers Major Decline

Published / by jiukuaiy

Consumer spending has taken a massive hit within the United Kingdom. Recent figures have shown that this current trend represents the most profound decline since the economic doldrums of the 1970s. Such a position has concerned economists for some time, as they were worried that it would have been one of the outcomes of the Brexit. However, is there more than meets the eye other than cold, hard facts? What are a handful of other potential causes and can the Bank of England take any actions in order to counteract this disturbing trend? Let us take a closer look.


The Basic Observations

The main takeaway point from what was found recently highlights that the economy of the United Kingdom experienced a sharp reversal in the first months of 2017. This is particularly the case in regards to consumer spending although some data suggests that the services sector may have seen a slight improvement. Furthermore, the Office for National Statistics (ONS) found that disposable household income suffered its worst decline in more than 40 years.

Other growth statistics were just as bleak. The ONS observed that investment in businesses increased by a mere 0.6 per cent during the first quarter of 2017 and that the services sector saw only 0.2 per cent growth. Now that we have highlighted some of the most prominent figures, it is important to take a look at why they are currently hounding economists.

The Average Consumer

The first point to take into account is the very real psychological effect that consumer confidence can have upon the economy. Many Britons are still wary about the impact that the Brexit will have upon their wages and future lifestyles. This actually makes a great deal of sense, for negotiations still seem to me mired in turmoil and suffering from political infighting.

As a result, many consumers are curtailing their spending habits until a clearer picture emerges. The main issue here is that it is not altogether certain when more stability will be gained. So, the United Kingdom could be in for a rough economic ride from a short-term point of view.

Inflation Concerns

Inflation is the other main factor. The pound has lost a significant amount of its value since the ratification of the Brexit. This is obviously detrimental when referring to the price of goods and services. It therefore makes perfect sense that consumers are tightening their proverbial “belts” until this value rises once again. However, there is a fair amount of uncertainty about how the pound will be affected by the Brexit and some fund managers are even predicting that it could reach parity with the euro in the not-so-distant future. While this might be able to increase foreign investments into the United Kingdom, it is not likely to help extricate the economy from its current doldrums.

What Steps can be Taken?

The next logical question to ask is whether or not the government of the United Kingdom can adopt any policies to ease this situation. One of the first steps may be for the Bank of England to enact a much-anticipated interest rate hike to stem the effects of inflation. This would be the first such move in a decade. It is interesting to note that such an action was not predicted to take place until sometime in 2019. Many feel that this hike will be discussed in greater detail when BoE executives meet in August.

Watch and Wait?

However, it is just as likely that policymakers will adopt a watch-and-wait approach as the details of the Brexit are ironed out in the weeks and months to follow. The only issue with this approach is that such an economic stance is not likely to ease the burden on the average consumer. We should therefore fully expect that this domestic spending slowdown will continue.

Overall, consumer spending will inevitably pick up pace as the effects of the Brexit become more clear to the UK population. The real question revolves around what damage will have already been done between now and then. It appears as if this bumpy economic road is not going away anytime soon.


Eid, Tiki Agent Turnover soared up to 20%

Published / by jiukuaiy

Coming to Lebaran, increased shipping activity. One agent Tiki, Gilang, said if the outlets has increased to 20 percent when the business through delivery of services during the month of fasting than normal month.

In usual, Tiki’s agent is able to achieve a turnover of Rp 25 million per month. This turnover will also increase to 20 percent during the fasting month this year.

“The increase 20 percent during the fasting month this year, compared to normal operation before the fasting month,” said Gilang the Okezone in Jakarta.

Howling explained, during the fasting month, rising delivery to shipping documents and that in fact cakes as souvenirs. Meanwhile, shipments to overseas destination.

However, Gilang said, by the time the week before Hari Raya Idul Fitri, delivery of goods will be more towards the area of Sumatra Island.

“Shipping now (month of fasting) most similar documents souvenirs, the most distant delivery Papua, if abroad Singapore, but if most of the week before Eid to Sumatra, Medan,” he said.