The risks when taking digital orders

There’s an amount of risk that stores take on when receiving digital orders. The two main risks are the following:

  • If a customer chooses to “pay later”, they may not collect the order. The store has then wasted time and money making the order.
  • If a customer instead pays online, they may try to use a stolen credit card. If the payment succeeds, the real cardholder will start a chargeback, the payment will be reversed and the merchant (the store) is left out of pocket and hit with a bank chargeback fee too. This is different to in store, “card present”, payments where often the bank is liable. For digital “card not present” payments the store is liable.

Chargebacks can be controlled by using fraud mitigations. Unfortunately, the more fraud controls you put in place, the harder it can become for customers to pay, and the more likely you will be blocking or inconveniencing genuine customers.

What fraud mitigations does Mobi2Go Payments provide?

Mobi2Go Payments has powerful default fraud mitigations and some optional fraud mitigations to consider if you’d prefer less risk.

Stripe Radar

There's an 89% chance we've seen your new customer's card already, and our machine learning will help detect and block fraud before it happens.
This has been on by default for Mobi2Go Payments since day one. We're seeing many payments blocked before becoming an issue.

Post code validation

When asking a customer for their card details we can optionally ask for their post code. Banks can choose look at the post code and reject the payment if it doesn’t match. It’s up to the bank whether to check or not, and not all banks do, so it’s not a solution to solve all fraud.
This can be enabled in your payment settings.

3D Secure

More commonly known to customers as Verified by Visa, MasterCard SecureCode, or American Express SafeKey, this is an additional check at the bank’s website which can be a bumpy customer experience. This will shift the liability from the merchant/store to the bank*, however you are likely to see a reduction in successful payments due to the additional barriers to customers, and therefore a reduction in online orders.
This can be enabled in your payment settings.

* Please note that when customers save their card, only the initial transaction is 3D Secure challenged, and the liability is only moved to the bank for that transaction. Once the customer has saved their card we trust that they had the right to use it. If chargebacks occur from future payments the merchant/store will be liable. However, given the card has passed a 3D Secure challenge previously we assume they own the card and that it won't be reported for fraud in future. We'll have a good defence when facing this situation.

Apple Pay

Mobi2Go also offers Apple Pay. Customers can only set up Apple Pay with approval from their bank, so as a result we've seen no fraud yet. For your store, Apple Pay can sit alongside any credit card payment gateway, or it can be provided as part of Mobi2Go Payments. From a store perspective nothing changes, you receive your payments through the usual Mobi2Go Payments disbursements. For customers it’s the easiest and quickest way to pay with Touch ID or Face ID. We’re aiming to have Google Pay ready soon too.
If you're interested in Apple Pay please contact support@mobi2go.com.

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