International Merchants Not Exempt from Fraud

Content Manager

When it comes to fraud, international merchants are just as susceptible. In fact international merchants have seen an increase in fraud from $2.30 in 2014 to $2.53 in 2015, according to the 2015 LexisNexis Risk Solutions True Cost of Fraud Study.

International merchants continue to see an upward trend in fraud loss as a percentage of their revenue is increasing from 1.21% in 2014 to 1.56% in 2015.


While international merchants may find verifying customer ID and confirming package delivery less challenging, identity theft and friendly fraud continue to be major loss drivers.

International merchants rush to accept mobile commerce payments, increasing to 29% of merchants in 2014 and 42% in 2015.  However, international merchants are falling victim to friendly fraud, identity theft, and fraudulent returns, which often leaves them unprepared for these challenges, especially outside the U.S.

New channels could complicate fraud mitigation and increase related mitigation costs. International merchants adopted 3.9 fraud solutions in 2015 compared to 3.3 in 2014, spending an average of $80,000 on fraud mitigation in the past 12 months.

Also from the report:

  • International merchants are four times more likely to believe manual reviews are a top challenge compared to that of 2014 and spent nearly 18,000 in manual reviews.  With card not present fraud expected to increase in the next few year, the report states matters will only get worse.
  • International merchants face the most acute false positive problem. This problem is sorely felt by international merchants, who decline the highest percentage of flagged transactions (27%), and were four times as likely to list excessive manual orders as their top fraud mitigation challenge compared to 2014.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.