Why Identity Verification is a Necessity for E-Commerce
We are living in an age where people prefer to order products from online stores rather than physically go to a store to shop. Online shopping has hit record highs and with that, running an eCommerce store has become remarkably challenging. Retailers want to make the online shopping experience better for customers and with that comes a number of steps that have to be taken to ensure the identity of the customers as well.
These security measures can become irritating and lengthy for the customers and this can result in the loss of revenue. This is the reason why robust and quick identity verification solutions should be used by retailers. For online shops that are selling products and services not meant for people under the age of 18, additional responsibilities arise. If proper age verification solutions are not integrated by age-exclusive stores, retailers can face hefty fines and penalties.
Identity Verification and Online Fraud
Although technological advancements are beneficial in the long run, one of the negative outcomes of this advancement is the increase in the frauds, hacks, and scams associated with the technology. As technology becomes more secure and advanced, so do the frauds and hacks against that technology. The same is the case for online shopping. Hackers and scammers have found a number of ways for online fraud. Some of these frauds include chargeback frauds, credit card frauds, etc. Stolen credit cards are much easier to use in the online space because they can go undetected because of the absence of identity verification solutions and other security measures. Between 2011 and 2013, the Card-Not-Present (CNP) fraud has risen 33% and it continues to rise. In order to combat these frauds and make sure that the client as well as retailer is protected against hacks, integrating identity verification services in your business is a must.
Shipping Errors and Identity Verification
Retailers face a huge loss due to shipping errors. Through the incorporation of identity verification services, the shipping process becomes far more accurate and effective. The shipping errors are eliminated when the customer’s shipping address is verified through proper identification services. This not only protects the business from losses but also elevates the customer experience by eliminating unnecessary delays in the shipment process.
Know Your Customer to Stay Compliant
Know your Customer (KYC) regulations ask the business owners to verify the shopper identity in order to mitigate fraud. The regulations originated with online banking and insurance companies but in recent years, e-commerce businesses have to stay compliant as well. KYC is done to boost sales, prevent online frauds and promote brand loyalty.
As the concept of online shopping continues to gain traction, the regulations around it also increase. Identity verification services help retailers stay compliant with regard to these regulations. It becomes important for retailers to know their customers and be compliant with the Know Your Customer regulations. Retailers who don’t integrate proper identity verification services fail to correctly identify their customers across the channels and are also vulnerable to risks, frauds, and compromise on their brand reputation.
Due to the increasing frauds and online scams, about 93% of the organizations consider identity verification solutions to be crucial to businesses. Organizations constantly look towards better verification services for their companies and online stores in order to better verify their customers. In recent times, protecting your business from fraud and making sure your customers have a good experience at your online store, businesses have to integrate robust, accurate and fast verification services.