Online shopping has hit record highs, yet running a successful e-commerce site has become more challenging in recent years. While companies want to make it as easy as possible for customers to buy products from their site, they must also take the proper precautions to ensure security and deter fraudulent transactions.
Unfortunately, adding additional security measures can increase the complexity of the checkout process and drive potential customers away.
To add to the complexity, many site owners offer products that can only be sold to customers over the age of 18. Stiff penalties often result when regulations are not followed. Until recently, it has been difficult to verify an individual’s age or identity without requiring customers to submit additional documentation.
A recent development, identity verification technology, has the potential to change the e-commerce landscape, making it easier than ever to verify a customer’s identity, without making transactions overly complex for consumers.
Here are 5 reasons you should be looking at identity verification tools for your e-commerce website.
1. Online Fraud is On the Rise
The impending switch from magnetic strip credit cards to chip-based cards in the US is expected to reduce in-person credit card fraud significantly, leaving criminals with fewer options to make use of stolen credit cards. Experts believe that many criminals will take their stolen cards to the internet where, at least for right now, it’s easier to use them undetected.
Card-not-present fraud costs have already risen 33% between 2011 and 2013 and continue to rise. By 2018, the research and advisory firm Aite Group expects these losses to reach $6.4 billion, a three-fold increase over the $2.1 billion in losses reported in 2011.
Excerpted from PowerRetail.com
To combat this ongoing threat, it’s more important than ever for e-commerce businesses to verify customer identities or face the consequences and costs of chargebacks resulting from fraudulent transactions.
2. Reduce Shipping Errors
Identity verification makes your shipping operation more accurate and efficient. By verifying a customer’s shipping address, you eliminate sending orders to the wrong place, which causes unnecessary delays and angry customers.
Using identity verification ensures customers receive packages at the right address, while reducing shipping costs and time spent on customer support inquiries.
3. Make Online Ordering Easier & More Convenient
One of the leading causes of shopping cart abandonment is the complexity of many online shopping cart systems. Customers often need to input information multiple times, increasing the likelihood that they give up or input information incorrectly.
Excerpted from Nextopia.com
Using identity verification technology you can give your customers the opportunity to scan their information directly into the system, paving the way for quicker, more accurate transactions. This saves customers time, increases sales and reduces customer support costs.
4. Make Mobile Transactions Safer
With more and more customers using their smartphones and tablets to make purchases online, it’s more important than ever to provide solutions to identify and protect users on the move.
Excerpted from DigitalBuzzBlog.com
Identity verification solutions can eliminate unnecessary typing for mobile users, while accurately identifying each user for secure, trusted mobile transactions.
5. Easily Implement Compliance Requirements
Whether you need to verify the age of your customers or comply with growing state and federal regulations, identity verification is an important step in the process, allowing you to cover your bases, while preventing potential lawsuits.
There are more than a few reasons to consider identity verification technology for your e-commerce website. If you’re interested in reducing chargebacks and fraudulent orders, improving the accuracy of your shipping operations, and making mobile transactions more secure, while also making it easier for customers to buy your products, identity verification could be the answer you are looking for.