While the rules protecting consumers from credit card fraud are the same online and offline, the rules that spell out who`s responsible for unauthorised charges are not. This is the opinion of leading Internet Retailing company, DigitalMall.com.
Worldwide estimates are that credit card fraud tops $1 billion a year, a stunning number but a drop in the bucket compared to overall credit card transactions.
But for practical purposes, the overall size of credit card fraud isn`t the issue. The question is: who is liable?
Not the consumer, says DigitalMall.com. "The scare regarding Internet commerce especially is somewhat of a red herring. The media has encouraged this paranoia, but the truth is, using a credit card over the Internet is no more risky than using one at your corner shop" says Garin Toren, marketing director of DigitalMall.com.
"Furthermore, should you report suspicious charges to your bank, they are required to investigate the issue with the merchant, and by contesting the purchase and signing a declaration to that effect, the customer is never liable for disputed purchases. This is something that all consumers need to be made aware of," noted Toren.
If, in fact, the consumer`s card was fraudulently used, guess who pays? The merchant, not the consumer.
Much has been made of threats to consumer security and vulnerability to online fraud, but the fact is that South African consumers face little risk. The real risk belongs to merchants as they bear the brunt of the responsibility for fraudulent credit card transactions online.
Internet shoppers should know that in reality it is much safer to enter one`s credit card number on a secure on-line order form than giving a credit card to a waiter in a restaurant. After all, what is to stop the waiter from writing down the credit card number and placing orders over the phone?
"We will soon get to a point where security will no longer be an issue. You are protected by your bank and should also be protected by the type of site you visit," commented Toren.
In response to growing suspicion about the safety of Internet purchasing, DigitalMall.com runs extensive fraud protection services on behalf of its online merchants.
"By working closely with Nedcor`s fraud department, a multi-leveled process has been running for some fourteen months now within our customer contact company. All transactions through DigitalMall.com that are above a chosen `floor` limit have to go through a clearing and verification process to determine card authenticity, credit approval and whether the card is local or international. All international cards are routed through an additional series of checks. Each of our retailers has this additional manual fraud protection process to supplement the electronic approval process," said Toren.
"DigitalMall.com have taken a lead in reducing credit card fraud by working with other industry players to implement and safeguard personal information contained on consumers` credit cards and underline our commitment to making E-commerce transactions on DigitalMall.com safe and secure for the cardholder," concluded Toren.
Share
Editorial contacts