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Financial: Failure to efficiently manage fraud can cause loss of revenue opportunity (rejecting valid orders), unnecessary revenue loss, and unnecessary sales overhead (manual order review). All of these concerns can be mitigated with proper fraud- management tools.

Strategic: Management may view international order acceptance as carrying an unacceptable level of fraud risk, and thus choose not to enter (or pull out after a short period of time). With the proper tools, this need not be an issue.

Consumer: The inability to manage fraud effectively can result in higher prices (passing on the cost of loss to consumers). It also results in poor customer experi- ence (i.e., delayed shipment of goods due to unnecessary order review, or cumber- some checkout processes that create extra navigation or checkout steps). Proper tools and rules can maximize fraud management transparency and thus improve customer experience.

Implications

Visa e-commerce cross-border handbook for U.S. retailers

Copyright 2010 Visa. All rights reserved.

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