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Q5 - Why does it seem that my fraud losses
are greater than my frauds?
A5 - In brick and mortar retail, losses from shoplifting equals the cost
of the merchandise stolen. In e-commerce, there are many additional costs.
The supplier and the shipping company still must be paid, and the credit
card processor gets paid twice. Stopping electronic shoplifting on one
transaction saves much more than the cost of merchandise.
Amount Saved By Preventing One $300 Fraud
| Product cost |
$250.00
|
| Shipping (O/N) |
$12.00
|
| Initial card processing |
$7.00
|
| Charge back cost |
$7.00
|
| Handling costs in house |
$8.00
|
| Fraud Investigation |
$18.00
|
| Incidentals (marketing, sales, etc.) |
$8.00
|
| Total Loss Avoided |
$310.00
|
