comScore the respected leader in digital measurement, reported that e-commerce spending for this holiday season is up 14 percent over last year. From Nov. 1-20, $9.7 billion was been spent online. The boost in online spending is an indication of the increased trust held by consumers that their credit card data is safely stored and not at risk from credit card fraud.
If you offer e-commerce with a shopping cart on your website, you need to be aware that credit card fraud is a significant threat. According to Javelin Strategy & Research, small businesses lost about $8 billion to fraud in 2010.
One way to protect your dealership from credit card fraud is to ensure your website checkout process is PCI compliant. Credit card data collected during checkout must be securely stored to meet the Payment Card Industry (PCI) Data Security Standards. PCI security standards were created to increase controls of cardholder data and reduce credit card fraud.
A website which is not PCI compliant leaves dealers and the consumers who purchase through their websites vulnerable to credit card fraud.
Online credit card fraud puts a dealership at risk for:
- Insurance claims
- Cancelled accounts
- Payment card issuer fines
- Government fines
If customers are able to conduct credit card transactions on your website, it is imperative that you know if your website is PCI compliant. Your website provider or the provider of your online shopping cart will be able to confirm whether or not the credit card data collected through your website is securely managed per PCI compliant standards.
If your site’s shopping cart is not PCI compliant, your provider should be able to refer you to specific PCI compliant payment processors who will assist you with becoming PCI compliant. Dealers may also consider PayPal or PayPal Standard as an alternative solution. Consumers with PayPal accounts are able to securely complete the checkout process through your website using one of the payment options available through their PayPal account. PayPal Standard, sometimes referred to as PayPal Business, allows consumers without a PayPal account to pay at checkout through your site with a major credit card.
If your website includes a shopping cart for consumers to conduct online credit card transactions, it is important for you to protect your customers and your dealership from credit card fraud. Make sure your checkout process is PCI compliant.