When it comes to things that you can do in order to improve your business operations and gain an edge over your competitors, one of the things you should do is invest in identity verification systems. Identity verification technology ventures beyond the physical and traditional methods of authentication to help businesses establish digital identities. The following are some of the benefits that you can get from this technology.
One of the things that identity verification systems can do is help you avoid costly chargebacks. Credit card fraud makes a large percentage of the total number of fraud related cases. Since most businesses these days have allowed their customers to make use of credit card when purchasing stuff online, it has become so easy to commit fraud because most transactions fall into card-not-present category. Because of this, a person can fraudulently use a credit card that is not theirs to purchase stuff online, and once the real owner figures out what is going on, they will cancel the transaction. Without the ability to identify and track the original fraudster, businesses may be able to pay back the money. In the finance world, this is referred to as chargeback.
Unfortunately, chargebacks are a costly part for businesses that accept credit card payments. With identity verification, a chargeback can be stopped within its tracks by fully verifying every customer. For most businesses, prevention of costly chargebacks is simply a case of revising the identity verification protocols for card-not-present transactions in order to incorporate one or more identification methods, for instance a two-step verification process or facial recognition. Identity verification can also stop cases of friendly fraud in its tracks.