Fraud average ticket value (ATV), or a retailer’s average size of individual sales by credit card, has decreased by $9.00 over the past year from $282 to $273, however the frequency of fraud has increased and it is also driven by lower shipping costs.
Naples-based ACI has released new data showing fraud rates by volume have increased: in 2015, 1 out of 86 transactions is a fraudulent attempt vs. 1 out of 114 transactions in 2014. Also fraud attempt rates by volume have increased by 30% compared to 2014 as consumers shop with more devices online and card issuers are slower to shut down accounts after fraudulent activity.
ACI noted the shift to more secure EMV chip cards will tighten controls on card present transactions, leaving fraudsters to look at eCommerce channels for attempts.
Fraud attempt rates by value have increased by 33% compared to the same period in 2014
Digital Downloads (Virtual Gift Cards or eGifting) has the highest fraud rate at 9.55%, followed by next day/overnight at 6.57%, international (2.38%) and buy online/pickup in store (2.15%)
Buy online/pick up in-store attempted fraud rates are expected to increase by 28% this holiday season as a result of EMV being deployed within the card-present environment. Retailers do not require consumers to re-run cards when they pick up products in store, making this an attractive option for fraudsters.
For data, background and forecasts on Online Card Fraud: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).