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Why Online eCommerce Transactions are Still Risky Business

Why are we still typing in our card data when buying online and risking hacking and identity theft?

Typing in our card data began in 1995 when eCommerce was just starting in the last century, but now we are in the 21st century.


Today 5,168,780,607 global Internet users https://internetworldstats.com/stats.htm still only have the choice to type in their card data or give over their private card data to a service which makes the transaction for them.


When you buy at a walk in store, no one sees your card data as you are using a terminal at the checkout counter. You either insert your card or swipe your card, and the terminal reads the chip on the front of the card or the mag strip on the back of your card that has all your bank information to make the payment.


But at an online eCommerce website, you have to type in your card data and many eCommerce merchants are not protected from hackers stealing card data and identities. In fact, any web site can be hacked.


Equifax is an example: On September 7, 2017, Equifax was hacked by Chinese military hackers who stole the social security numbers, birth dates,, and addresses of 147,700,000 Americans. Almost half the country.


This can’t happen at a walk in store as a terminal makes the transaction and no one sees the buyers card data.

So here we are in the 21st century still typing in our card data and risking hacking and identity theft.


How many times have you paused at checkout due to your concern of hacking and identity theft?


What about me using my iPhone or Android phone online as my personal consumer terminal and no one sees my card data online?

That would be great news for over 26 million global eCommerce merchants and 5,168,780,607 global Internet users and for hundreds of card issuers. Everyone wins!


Online eCommerce transaction are still risky business for eCommerce merchants who may be selling to a professional disputer who plans to buy the merchant’s products, receive the product and then dispute that the disputer does not recognize the purchase.


When that happens, the eCommerce merchant has their sales proceeds pulled from their merchant account and the dispute then begins between the professional disputer and the eCommerce merchant who often loses the dispute, and the professional disputer receives a refund and keeps the merchants product for later sale.


That’s because there was no terminal between the eCommerce merchant and the professional disputer as compared to a purchase at a walk in store where there is a terminal between the merchant and the buyer.


The “ I don’t recognize this transaction’ is known as Friendly Fraud and results in losses for the eCommerce merchant all because their was no terminal between the professional disputer and the eCommerce merchant as compared to an in store transaction.

Friendly fraud results in a loss of the sale for the merchant plus the eCommerce merchant is fined and can end up losing their merchant account. All because their was no terminal between the eCommerce merchant and the professional disputer.


Friendly Fraud losses are estimated between $50 billion and $100 billion a year.

An eCommerce terminal can stop losses from professional disputers saying “I don’t recognize this transaction”.


Online eCommerce transactions are still risky business for both consumers and merchants.

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