and, even though some lone individuals use stolen credit card data to purchase products for themselves, the vast majority of card-not-present (CNP) fraud comes from organized criminals intent on reselling products on a large scale.
High-value merchandise, which sometimes bridges multiple categories:
Combined with the industry popularity and the abundance of secondary marketplaces, middle markets, and aftermarkets:
provides easy turnaround for criminals to rapidly turn stolen items into easy cash, putting the industry in a fraud-rich landscape, an increasingly appealing target for CNP Fraud.
This may come as a surprise considering that the number and size of auto parts complicates resale logistics:
But fraudsters work in teams and selectively target certain types of auto parts.
Fraudsters balance market demand with the ease of resale and the physical size of items. Below are the groups of automotive products most prone to fraud:
average fraudulent order for overall retail market.
Fraud prevention is a numbers game, and the most important key performance indicators to watch are your chargeback rates and decline rates.
In general, if your domestic chargeback rate is above 0.25% and/or your decline rate is above 1.5%, you have a problem.
A merchant’s chargeback ratio is the number of chargebacks compared to overall transactions for a given month.
As the number of chargebacks against a retailer rises, so does the ratio.
It’s important to note that each card issuer calculates this ratio slightly differentl
Visa, for instance, divides the current month’s number of chargebacks by the current month’s number of transactions. But MasterCard divides the current month’s number of chargebacks by the previous month’s number of transactions.
Fraud prevention strategies must be aligned with businesses goals. For this to happen, you need a solution that allows you to manage performance, not just features.
If you believe that you have opportunities to improve your business in any of these areas, ClearSale might be your partner of choice.
ClearSale has been providing comprehensive business solutions focused on delivering results that matter
Optimization of chargeback and approval rates with top-notch customer service
For more than 15 years in over 150 countries.
Customers continually tell us how ClearSale make their lives easier by increasing sales, controlling fraud, and improving customer experiences.
But don’t just take our word for it. See the results of focused expertise through real-life stories, from ClearSale clients like you:
Standard gasoline and hybrid engine automobiles are one of the most common modes of transportation worldwide, and with their use comes a lot of maintenance.
This makes automotive parts and accessories a steady industry, growing at the same rate as the overall retail industry.
“A Must Have! Personable, professional, and very much appreciated. I would not operate a commercial on-line transactional business without ClearSale.”
“ClearSale allows us to focus on running a business instead of fighting fraud. We were skeptical, but ClearSale has proved themselves time and time again. We couldn’t be happier with their performance.”
“We decided to integrate ClearSale and the impact of adding was almost immediate. The commission is worth it, as more sales are approved.”