Reduce risks to your eCommerce business by implementing these 5 ...

Friday 12th October 2012

Security breaches, fraud and customer disputes represent just some of the risks associated with eCommerce when you accept credit card payments. ?A single incident involving a breach of sensitive data could result in fines, negative publicity and a loss of trust and credibility for your organisation.

Whilst an element of risk is unavoidable, a risk management approach to online business is crucial. Transaction Age? recommends the following best practice steps to facilitate the safety of your eCommerce business.

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1.??? Educate your team on eCommerce risks

Everyone operating within your organisation should have an understanding of the fraud and security risks involved in an eCommerce transaction. They should also have in-depth knowledge of your organisations eCommerce risk management policies and procedures.

The more informed your organisation is, the easier it will be to combat online threats and to carry out risk mitigating measures.

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2.??? Communicate organisational policies to customers

In order to avoid customer dissatisfaction and disputes, it is necessary to make the following information clear throughout your website:

• Privacy policies ? these should be available through links on your website.

• Information security: Create a page that educates customers about your security practices and controls.

• Shipping and billing policies ? these should be clear, comprehensive and available through a link on the home page during online purchase.

• Refund policies: Establish and display a clear, concise statement of your refund and credit policy.

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3.??? Ensure Payment Card?Industry (PCI) compliance

All eCommerce organisations are required to be PCI compliant and must adhere to the rules outlined by the Payment Card Industry Security Standards Council. If your organisation is not PCI compliant, it may be exposed to severe fines and the risk of having its payment ability removed.

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4.??? Protect your eCommerce business from intrusion

• Viruses: Check your website daily for viruses, the presence of which can result in the loss of valuable data.

• Hackers: Use software packages to carry out regular assessments of how vulnerable your website is to hackers.

• Passwords: Ensure employees change these regularly and that passwords set by former employees of your organisation are defunct.

• Regular software updates: Your site should always be up to date with the newest versions of security software. If you fail to do this, you leave your website vulnerable to attack.

• Sensitive data: Consider encrypting financial information and other confidential data (using encryption software). Hackers or third parties will not be able to access encrypted data without a key. This is particularly relevant for any eCommerce sites that use a shopping cart system.

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5.??? Know the details of your payment service provider contract

Do you fully understand your liability for losses relating to compromised card data?

Be familiar with your contract, particularly the areas that refer to holding funds and chargeback liability. Know the length of time and conditions under which your deposits may be held and know your liability for fraudulent transactions.

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TransactionAge? supports the view that eCommerce has revolutionised business, making it more streamlined for businesses to accept credit cards online and increasing transactions convenience, flexibility and cost effectiveness. However, we are also aware of the significant risks involved in this process. Throughout this article, we highlighted the dangers of fraud, customer disputes and other threats that can cause damage to an organisation?s reputation and indeed, can often result in financial losses. Our aim here is to educate merchants, not only on the threats themselves, but also on ways to reduce exposure to them. By incorporating all or just some of our five suggested steps, we hope that your business will be less at risk and that you will be better equipped to conduct your eCommerce transactions safely.

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Source: http://www.transactionage.com/2012/10/12/reduce-risks-to-your-ecommerce-business-by-implementing-these-5-steps/

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