Payments ‘Concierge’ Mentality Can Lead to Friendly Fraud

Monica Eaton-Cardone’s Latest Column for PaymentsSource

Ever-increasing speed and convenience in eCommerce is a great thing. But, as Chargebacks911® COO Monica-Eaton-Cardone says in her latest guest feature, this can have some unintended negative consequences.

PaymentsSource offers frontline coverage and analysis for payments professionals. They provide “critical insight and thought leadership on the fast-moving global payments sector,” attracting an audience more than 16,000 followers representing merchants, acquirers, issuers, gateways, and PSPs.

We develop fantastic new modes of conducting business as technology evolves. Innovations like open banking, BOPUS (buy online, pick up in-store), and sophisticated loyalty programs are fantastic opportunities. That said, they all involve a certain level of risk, as fraudsters quickly discover new ways to take advantage of the situation. This is compounded by customers’ standards for convenience.

“Contemporary consumers have what we may call a ‘concierge’ mentality,” says Monica. “Through increased convenience and access to faster, more convenient payments, we’ve unintentionally retrained consumer expectations.”

Retailers face pressure from consumers and fraudsters. The only way to meet these challenges is through a dynamic response. “We should call for a multi-layered understanding of fraud on the part of merchants and banks. The more dynamic our approach, the better-suited it will be to withstand new and evolving threats.”