Currently, the growth of e-commerce in Southeast Asia is increasing very rapidly. Google estimates its value will exceed US $ 200 billion by 2025. With this significant growth, a new problem will definitely arise, namely online fraud.
In Southeast Asia alone, e-commerce will lose US$260 million from online fraud with Indonesia, Vietnam and Thailand on the top three of countries with the hardest hit. In fact, a report from Google shows that Indonesia has the highest rate of e-commerce fraud compared to any other Southeast Asian country at the rate of 44.1%. Wow, that’s a devastatingly fantastic number, isn’t it?
From that, it can be concluded that the biggest challenges in fraud management in Southeast Asia are the inconsistent implementation of fraud management systems and tools, lack of expertise and lack of efficient data management. Then, how to minimize online fraud? Let’s find out the answer in this article.
How to Minimize Online Fraud?
One simple way that you can do is to integrate your online store with a payment gateway. A payment gateway is a technology to make it easier for your business to accept online payments from a website or app. A payment gateway functions as a channel that connects your holding account to the platform where you make transactions. Not only for accepting payments, using a payment gateway can also make online transactions safer!
What Makes Online Transactions with Payment Gateway More Secure?
1. PCI-DSS Certificate
A payment gateway is a technology to make it easier for your business to accept online payments from a website or an app. A payment gateway functions as a channel that connects your holding account to the platform where you make transactions. Payment gateway also allows you to accept payments by credit card.
Payment gateway offers various conveniences for all transactions, but you also have to pay attention to the security certificate owned by the payment gateway that you use. Make sure your payment gateway has a payment card industry data security standard certificate such as PCI-DSS.
The certificate indicates that a payment gateway can maintain credit card data and personal identity used by customers to make payments. So customers will feel safe and comfortable when making transactions on your website because their data is guaranteed to not leak. You will also definitely avoid the problem of data leakage from your online business.
2. 3 Way Authentication
Three-factor authentication is a very important thing to activate if you provide credit card payments. Three-factor authentication can minimize fraud because it requires users to confirm the user’s claimed identity using a combination of three different factors.
The first factor is the card’s expiration date, while the second factor is the 3 digit number on the back of the credit card (CVV). Since September 2015, Bank Indonesia has required online credit card transactions to use the One Time Password (OTP) media, which is sent via short message to a registered mobile number, to authenticate transactions. That is the third factor. This way, we can be sure that the identity of the registered credit card user won’t be leaked.
3. Fraud Detection System
Transacting through a payment gateway makes you feel more secure and comfortable. For sellers, there is no more falsification of payment receipts since all transfers are checked automatically by the system. And for customers, they will feel more secure to make transactions at your online store.
It is because the payment gateway is connected to a number of trusted banks and is equipped with a fraud detection system that can detect fraud. There will be no more incidents of being contacted by a bank for allegedly committing fraud!
4. Save Customer Data
Payment gateways allow you to store customer data that has made transactions at your online store so that when there is a fraud or other necessary matters, you can view the data contained in the payment history with the payment gateway. So, it minimizes the risk of fraud.
Those are some of the things that make a payment gateway ables to minimize fraud. That way, not only buyers feel safe and comfortable when shopping at your online store, but you also feel more secure and convenient in running your business. Are you interested in integrating your business with a payment gateway?
However, you should be careful in choosing a payment gateway as your business partner. Therefore, choose the right partner to develop your online store like Duitku. With Duitku, you will enjoy various conveniences for all your business transactions. And don’t worry! Duitku has an official license from Bank Indonesia, meets PCI-DSS standards, and equipped with a fraud detection system. With Duitku, all your business transactions will be faster, easier, and more convenient.
Whatever the transaction is, Duitku is the answer!