As a continuation from our 14 Ways to Better Manage e-Commerce Risk Part 1 post, here are the remaining methods on how to better manage risks in e-commerce.

8. Protect your merchant account from intrusion. Implementing proactive measures can minimize the risk of criminals gaining access to your shopping cart or payment gateway and making fraudulent fund deposits.

9. Create a secure process for routing authorizations. You need to set up a secure and efficient process for submitting authorization requests over the internet, before you can start accepting card payments online.

10. Set up a process for handling transaction post-authorizations. You need an effective process in place for dealing with approved and declined authorizations before fulfilling an order.

11. Protect cardholder information through PCI compliance. The Payment Card Industry Data Security Standards provide eCommerce merchants with standards, procedures and tools for data protection. You will need reliable encryption capabilities for data transmission and effective internal controls for protecting stored card and cardholder information. You will also need to review your security measures on a regular basis.

12. Prevent unnecessary chargebacks. All merchants detest chargebacks beceause they will eat up their processing time and will lead to money being lost. Not only that, it will also potentially hurt the merchants’ reputation, resulting in a loss of profits. Because the anthill-sized nuisance becomes a mountain-sized problem, merchants should carefully track and manage them properly. This has been mentioned in our 7 Ways to Play It Safe When Accepting Credit Cards Online post as well as the previous 14 Ways to Better Manage e-Commerce Risk Part 1 post. However, I will reiterate again that it would be wise to verify cardholders’ addresses to confirm that he or she indeed made the purchase. To lessen chances of chargebacks, one can also avoid orders placed from a free email address such as those belonging to Yahoo! Mail or Hotmail. Also, if there have been large instances of fraudulent orders, you should definitely start recording the fraudster’s IP address!

13. Monitor chargebacks. Effective chargeback monitoring mechanisms will help you detect excessive chargeback activity, identify the causes, and apply corrective measures to bring chargeback levels down.

14. Plan more collection efforts so as to lessen your losses. If you have crafted a good collection system to help you recover unnecessary chargebacks, you will find that it will be easier to manage risk in your e-Commerce business.

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