Running a company in the 21st century brings about unique challenges. The fastest growing crime in the United States is identity theft, and friendly fraud is a constant problem that merchants have to deal with. People who want to succeed have to deal with these realities. Identity verification services help in this quest. Here are five ways using an identity verification service can add value for a company and its customers.
Reduction in friendly fraud accusations
Friendly fraud is when a person purchases an item and files an unauthorized transaction claim anyway. When a person does this, he or she can sometimes get money back while also keeping the item. Using an identity verification service for transactions can deter this kind of behavior. When people know a company has this kind of service, they'll be less likely to pull a risky stunt.
Improvement in brand image
Today's consumers are more concerned than ever with corporate social responsibility. They expect your company to be doing more than just selling widgets. They also think you should be solving the world's problems. While you might not be able to cure world hunger, you can help to protect them and prevent fraud. Your brand's image will improve dramatically when you spend some money up front to invest in a service that checks identities.
Reduced administrative costs in dealing with claims
If you happen to sell a product to a person who has stolen another person's credit card, you will be in for a major hassle. In addition to potentially being liable for damages if you did not follow proper protocol, you will spend significant time dealing with the mess. If your company is small, you'd probably rather be doing almost anything else with your time. You'll experience more freedom when you have fewer claims to deal with.
Better relationships with your bank
Banks despise dealing with merchants who sell to people without first checking identities. Banks have to pay administrative costs, too, and they expect you to be doing everything in your power to verify identities before you sell a product. Businesses depend on good relationships with banks and credit card providers. You may need to go to that bank later to ask for a loan. You might need to use some clout to adjust your rates in the future. Using an identity verification service will allow you to build a better relationship and benefit down the road from your efforts.
Lower credit card processing fees
Credit card processing companies can sometimes choose to hike the rates of merchants who refuse to get with the times. If you have too many chargebacks against your company, your processor could even choose to cut you off from using the service. This is money out of your bottom line and a hassle you don't need.
An identity verification service will let you know precisely who you are dealing with when a customer walks through the door. They can also be used to account for purchases made over the Internet. Wouldn't you like to take a small step that will provide great value to your company?