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BizReport : Ecommerce archives : April 01, 2008

Consumer fraud concerns affect sales

Many Internet users are unaware of their liability should their credit or debit card data be stolen, according to new research conducted by JupiterResearch for eBillme.

by Helen Leggatt

jup_logo.gifHesitation during the checkout process is leading to lost sales, concludes eBillme after a study into the online shopping habits of Internet users. The problem, it seems, is that online shoppers aren’t aware of the percentage of purchases they would be charged for in the event that their data was lost or stolen.

Sixty-eight percent of credit card users and 65% of debit card users were unaware of what percentage of fraudulent purchases they would be liable for. Online retailers need to include alternative payment methods to attract the millions of consumers who are yet to be convinced to buy online using their credit or debit cards.

"While eCommerce continues to rapidly grow, there are still 74 million online consumers who do not buy online," said Marwan Forzley, President and CEO of eBillme. "This data shows us that consumers want to know how they are being protected from risks of fraud or other factors that can affect their purchases.”

Rewards and points earned don’t sway a users payment option either – just 17% said it was most important. Fraud protection, price protection, lowest price offerings and changes in online checkout processes were deemed more important by those surveyed.

Tags: checkout, credit card, ecommerce, fraud

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