More and more companies are delivering digital subscription services to drive customer engagement and top-line revenue. However, as services become available and increasingly popular, they also attract the attention of fraudsters seeking to exploit vulnerabilities in payment systems.
Payment fraud is a major threat to subscription businesses, potentially impacting revenue streams, customer trust, and operational efficiency. In fact, it’s only becoming more of a threat — “card not present” fraud will make up 74% of fraud within the next year, compared to 57% before the pandemic.
IT and payment managers are desperate for a better way to assess risk, reduce fraud, and protect revenue. And while there are lots of standalone and gateway-based fraud solutions out there, deciding which one to choose for your company can be a challenge.
Subscription businesses need clear, cohesive strategies and capable tools to protect against the risk of fraud. In this article, we delve into the world of payment fraud, explore its effects on subscription services, and outline the benefits of implementing a gateway-agnostic solution.
Research shows that electronic payment fraud is on the rise. Without robust fraud protection, brands risk damage to their reputation and their revenue.
Bad actors employ a variety of sophisticated fraud techniques, including stolen credit cards, identity theft, and chargebacks, to exploit vulnerabilities in payment processes. Unfortunately, subscription businesses — with recurring billing models and large customer databases — are lucrative targets for fraudsters to take advantage of loopholes in these systems.
Let’s take a look at some of the wide-ranging impacts of fraud on businesses.
Despite the mounting menace of payment fraud, subscription services can shield themselves from many of these adverse effects with the right strategy and tools.
Here are three steps every subscription business should take to implement fraud prevention and mitigation measures:
Zuora has partnered with Microsoft® to launch Zuora Fraud Protection — a gateway-agnostic fraud protection solution that reduces payment fraud and helps boost business revenue. This add-on solution to Zuora Payments uses adaptive AI, the Fraud Protection Network (FPN), and transaction acceptance booster to deliver merchant value.
How can Zuora Fraud Protection features benefit your business?
Payment fraud poses real danger to subscription-based businesses, impacting their financial stability, customer trust, and operational efficiency. By understanding the various impacts of payment fraud and implementing strong prevention measures, your company can safeguard revenue streams, protect your reputation, and provide a secure environment for customers.
Learn more about how Zuora can help you reduce fraud.