{"id":4540,"date":"2014-03-20T13:25:00","date_gmt":"2014-03-20T13:25:00","guid":{"rendered":"https:\/\/evssolutions.com\/tiered-identity-verification-for-e-commerce\/"},"modified":"2014-03-20T13:25:00","modified_gmt":"2014-03-20T13:25:00","slug":"tiered-identity-verification-for-e-commerce","status":"publish","type":"post","link":"https:\/\/evssolutions.com\/insights\/tiered-identity-verification-for-e-commerce\/","title":{"rendered":"Tiered Identity Verification for E-commerce"},"content":{"rendered":"

In their <\/span>2013 Online Fraud Report<\/span><\/a>,
\nCybersource Corporation estimated $3.5B in lost revenue for e-commerce
\nmerchants.Despite the enormity of the impact many e-commerce merchants
\nare hesitant to implement <\/span>identity
\nverification methods<\/a> due to concerns regarding user experience.<\/span><\/p>\n

As the occurrence of online fraud increases e-commerce
\nmerchants will need to start looking at transactions differently. All
\ncustomers are not the same, and orders should likewise not all be treated the
\nsame. By acknowledging that some transactions involve a higher level of
\nrisk than others merchants can put controls in place without impacting the user
\nexperience (and order completion rates) for the majority of users.<\/span><\/p>\n

Visa provides
\na list<\/a> of indicators for fraud in card not present (CNP) transactions like
\ne-commerce. These behaviors reflect the transactions that comprise the
\ngreatest level of risk (and therefore would need the highest level of identity
\nverification to mitigate risk). While not included on Visas list,
\ntransactions where the ship-to address and bill-to address are different also
\ninvolve a higher level of risk than transactions where the bill-to and ship-to
\naddresses are the same (although comparably moderate risk relating to the other
\nfraud indicators).<\/span><\/p>\n

Considering the three levels of risk (low,
\nmoderate, high) for various transactions, I would propose that e-commerce
\nmerchants should incorporate the following levels of identity verification to
\navoid fraud:<\/span><\/p>\n