How Visa can protect you against unprecedented fraud

Fraud has been an ever-present threat in the payments and eCommerce world, and it won’t be leaving any time soon. How can you be sure that your business is prepared to counteract any fraudulent activity that may come your way? Visa Acceptance Solutions, in collaboration with the Merchant Risk Council (MRC) and Verifi, has identified steps you can take to protect your business in its 25th edition of the Global eCommerce Payments & Fraud Report. Featuring responses from more than 1,100 small business, mid-market, and enterprise merchants across 35 countries, the report examines the evolving payment processes and merchant adoption strategies to look out for in 2024 and beyond.

Whether you’re a small business looking after every penny or an enterprise corporation seeking to reduce the high cost of fraud, knowing where fraudsters hide can help you uncover their crafty tactics before it’s too late. The first three sections of the report examined the current state of eCommerce payments through payment acceptance, payment tactics & metrics, and payment partnerships. The latter half of the report discussed eCommerce fraud, such as fraud opportunities, first-party misuse (FPM), and fraud management. Here’s what they found:

The types of fraud experienced increased from three to four this year, with new types of attacks on the rise. 79% of merchants reported that they experienced FPM this year, with FPM increasing significantly from 34% in 2023 to 45% in 2024.¹ FPM took over the top spot in most regions globally, highlighting its exponential rise with an increased focus on how to combat it. With the average cost of a single FPM dispute landing at $74, the customer experience with disputes is hurting brand loyalty. First-party fraud is clearly a growing problem with merchants losing profitability because of it. Tuning up your fraud strategy is paramount, then, to battle the increase in FPM and other fraud challenges. Visa Acceptance Risk Solutions and Verifi, with our solutions such as Decision Manager and Order Insight, can help protect you against unnecessary fraud and streamline your fraud strategy to your risk tolerance, uplifting your ability to fight fraud before it even occurs.

With 60% of merchants expecting to increase spending on technology to fight fraud in the next two years, they are actively leveraging tools to protect their businesses. 59% of merchants use AI/ML-based fraud solutions, 55% use fraud orchestration platforms, and 53% use compelling evidence rules to dispute chargebacks. While having tools is essential to this process, you also need the right people to help manage risk and provide deeper insights for your fraud strategy. Our Managed Risk Analysts can do just that for you, mitigating fraud while with actionable insights and fine-tuning your strategy as you go.

Ultimately, fraud is not only complicated but expensive to manage. Investing in the right tools can help lower operational costs, as your fraud can be managed from advanced AI/ML-based solutions that let good orders come through.

To compete in the complex fraud environment we live in, you can have a leg up on the competition. The right partner and AI solution can help you fight emerging fraud schemes (Decision Manager, anybody?) and provide automated insights into your business that will accelerate your risk strategy above the rest. Keep fraud at bay with the right partner. Visa Acceptance Solutions can open more opportunities for you now and in the future. Whether you need to protect online accounts from unauthorized access with our Account Takeover Protection or an extra layer of protection with our Payer Authentication solutions, we can package all your fraud fighting needs into one localized space for easy access and management. Fraud is already complicated enough—how you manage it doesn’t need to be.

Protect your business today!²