Posts Tagged ‘eCommerce’

Determining Sales Tax Nexus: It’s Trickier Than You Think

If you sell products nationally, do you need to collect state or local sales taxes? The answer may be more complicated than you think.

In the United States sales taxes are levied at the state and local level, and normally need to be collected by you for sales in state(s) where you operate. (Fun fact: in other states they are often still due from the consumer, through what are known as consumer’s use taxes. The question becomes whether you, as a business, need to collect them at the time of sale.) As for these other states, your obligation to collect sales taxes depends on whether you have what is called nexus in these states.

Understanding nexus

The obvious case of sales tax nexus is when you have a physical, bricks-and-mortar sales presence in another state: for example, if I purchase a sweater online from Cincinnati-based Macy’s, they collect sales taxes for my home state of California because they also have physical stores here. But many other situations that can trigger nexus as well – here are some examples:

Employees and contractors. According to the Sales Tax Institute, having a “representative, agent, salesman, canvasser, or solicitor” in another state who is under your control, even temporarily, can create nexus. And in some states any telecommuting employee – selling or not – may trigger nexus.

Selling online. Laws are changing to recognize the huge shift in retail commerce from Main Street to online merchants. Thanks to a recent June 2018 Supreme Court decision, states now have the option of requiring online sellers to collect sales taxes for their states. In addition, more than 20 states now have what is known as “click-through nexus” for cases where you pay referral fees to in-state affiliates for sales via their web pages, usually triggered by a specified minimum volume of sales in that state.

Trade shows. If you sell products or solicit business at an out-of-state trade show – for example, by having a booth in the exhibitor hall that sells products or distributes literature to attendees – you may or may not be on the hook for sales tax nexus. State rulings vary widely, and while most differentiate between selling activities at a conference versus simply listening to speakers and eating mediocre banquet food, even one day of marketing activities can trigger nexus in some states.

When to bring in the pros

This brings us to an important closing point: determining your sales, local and use tax obligations isn’t a job for amateurs. If your business is large enough and does business nationally, it makes sense to contact a tax professional for guidance on where your business has nexus.

Once you have determined where you have nexus, you also need an automated tool to help you navigate a potential maze of state, local and special tax rates for each customer. Tax rates change constantly, and can literally vary from street to street within the same ZIP code, so this isn’t a do-it-yourself project for most businesses. Our DOTS FastTax service provides accurate, detailed tax rate data on an address-by-address basis, using an API interface that integrates seamlessly with major marketing or CRM platforms.

Want to learn more? Contact our experts to discuss your specific sales tax needs.

Cyber Monday is Coming. Is Your Business Ready?

In 2017, Cyber Monday sales reached an all-time high – and trends show that we may see another record-breaking year. Service Objects broke its own record last Cyber Monday with the most transactions in a single day. Why were our data validation tools so in-demand? Because excited customers rushing to score online deals make lots of data entry errors. Capturing authentic contact data helps businesses avoid mistakes in the ordering and shipping processes and prepares them for future opportunities, like marketing campaigns and additional sales.

Data validation services enhance data quality in real-time by identifying and correcting inaccuracies. For example, order validation not only verifies that an order is legitimate, it also corrects and appends contact data like name, address, email, and phone number using up-to-date, proprietary databases. Cross-referencing IP, address, phone, email, and credit card information helps every aspect of your business – from making ordering and shipping efficient to helping flag identify fraud and verifying email addresses for future communications.

Data Quality at Point of Sale

Validating an order at point of sale helps smooth out transactions for customers by suggesting more accurate addresses and updating typos. Adobe Insights reported that Cyber Monday sales grew 16.8% from 2016 to 2017 reaching $6.59 billion, $2 billion of which were completed on a mobile device. Because we make five times more mistakes on mobile than desktop, fat-fingered typos and autocorrect issues are becoming more prevalent.

Order Validation can also help prevent fraud in real-time by verifying that customers are legitimate through cross-checks of contact data, IP address, and credit card information. These verifications can flag suspicious activity related to identity theft and high-risk prepaid cards, which helps avoid related chargebacks. Fraud hurts businesses through lost product, money, and hours managing the fallout – the best way to avoid those costs is through preventative measures, like validating orders before shipping.

Data Quality and Order Fulfillment

With last year’s record sales came unprecedented shipping demand, and shippers like UPS struggled to meet delivery expectations all over the country. Customers anxiously awaiting their packages took to Facebook and Twitter to air their grievances, but while UPS was the bottleneck, many angry tweets were directed at vendors.

Given the rising trend in Cyber Monday sales over the years, it’s likely this year will bring even more orders, shipments, and delivery-related problems. Using a CASS certified address validation service, like the one incorporated in Service Objects’ DOTS Order Validation API, can help ensure that your shipping addresses are correct and deliverable. The service can be implemented to help customers self-correct inaccurate information before submitting their order, or can be used post-transaction to ensure accuracy by finding issues and suggesting corrections before shipping.

Customer Service Benefits from High Quality Data

The holidays are a stressful time, and shoppers have hard deadlines when ordering gifts in November and December. According to the National Retail Federation, 38% of consumers expect free two-day delivery when making online purchases. Address verification helps meet these expectations, cutting down on service inquiries for delayed packages. Order Validation also validates email addresses and phone numbers, ensuring notifications reach shoppers and giving your customer service representatives everything they need to communicate effectively.

Precise contact data saves your customer service team time troubleshooting and appeasing upset callers, strengthens your relationship to promote repeat business, and helps you manage your reputation. And, in the off-chance that something does go wrong, your team will have the most up-to-date order information to handle the call and assure your customers that you care.

High Risk Days Require High Quality Data

Data quality plays an important role in managing the risks of high-volume transaction days like Cyber Monday. The best way to ensure contact data doesn’t get in the way of your biggest sales day is by validating and verifying transactions with a service like Order Validation. You can even try it out today with a free trial key.

Better Sales Tax Matches with New FastTax Improvements

Service Objects has been returning location-based tax rates in the DOTS FastTax API since 2001. Back then, we identified sales tax rates using only zip code. Since zip codes could cross multiple city and county borders, we were returning the rate most likely to be accurate based on preferred city and county. That evolved to returning multiple results based on a zip code, with each result containing a unique city, county and state. This was more accurate, but still involved a level of human intervention as multiple rates could be returned.

The service improved further as Service Objects developed its DOTS Address Validation services, which allowed us to get even more precise in determining the right area for the tax rates. Users could now submit a full address to the API and in most cases get a single accurate result, pinpointing the result to a location that had a clear tax rate.

However, if a given address was bad – or maybe even good but too messy to validate – it would not return a result and users would need to failover to the zip code level operations. Rural addresses which fall outside of city boundaries could wreak havoc if the proper location is not identified.

Last year, Service Objects introduced a new operation, GetBestMatch, to solve these challenges.

GetBestMatch in FastTax is designed to find the best rate possible and return a clean result. It uses the latest algorithms from Address Validation – US to clean and validate the toughest addresses and failing that, validates that the other data points are valid in order to return a zip level rate.

The service can also return an address level rate through the analysis of the nearby area, even if the address is bad. If an area can be proven to have a consistent rate for a zip, city or county and we know the address would be within one of those areas with 100% certainty, it can be deduced that since any address within that area has the same rate, the rate we return would be accurate at the address level. This extra analysis means that GetBestMatch can more precisely return accurate rates more often than its predecessor operations.

Additional Returns Offer More Insight

To add even more accuracy to the service, GetBestMatch also does boundary analysis to ensure the most accurate location is used in the tax calculations. The main piece of information returned to users here is the “IsUnincorporated” note. IsUnincorporated helps users identify locations that might be considered part of the city but actually are not. This example shows what that might look like:

823 Holiday Dam Rd, Honea Path, SC, 29654

This is a partial return of the operation including the Note IsUnincorporated. This notifies the user that the CityRate, if it exists, should not be used in the final TaxRate. We have decided not to modify the original found result (TaxRate and CityRate) but return the IsUnincorporated result so that the user can handle it however they wish. In an upcoming release we will be adding a new return “UnincorporatedTaxRate” to simplify all of this.

The improved rates of return for address level checks also come with a few new challenges. Since we can return accurate rates even if the address is extremely messy, there might be times when we do not always have an accurate city or county to return. We know the rate is accurate but not necessarily exactly where the location is located. For example:

11900 Hunting, Pickerington, OH, 34147

This is a bad address. However, through extra validation we know the other parts of the address are good. We know the zip code and county are good, but it’s possible for multiple cities to fall within these boundaries. Analysis shows the rates would be the same regardless so while we are not able to accurately tell what city is attached to the address, we still know every address in the potential area would have the same rate, so we can confidently say the rate would be good for the address. Another example shows an even more obvious reason why we might not have a value:

8538 Smith Street, Wales, MI, 48027

Again, the address is bad, but this one is easy. Michigan only has a state rate, which means that all addresses within Michigan will have the same state rate. The analysis of city, county and zip shows a consistent city and zip, but the county could be multiple results. So, we can display city and zip code but not county. FastTax is not intended to be an address validation service, but a helpful tip is to look at the Zip return. If the Zip is 5 digits, it meant something happened during validation and the address did not pass inspection.

The latest GetBestMatch updates also added support for the US Territories (Guam, Micronesia, American Samoa etc.) Here is an abbreviated example of an address in Guam:

Bldg 30 Farenholt, Tutahan, 96910

In addition, we already supported military locations within the United States, but now there is support for all of the remote bases around the world as well. An abbreviated example of that can be seen here:

Unit 28103, USAG Graf Chaplain, APO, AE, 09002

Since all of these locations, even the ones abroad, had US assigned postal codes; making sure we could return results was of utmost importance. We now have a complete list of results covering all areas associated with the United States.

Finally, the latest operation also now supports JSON responses as one of our last services to be converted. This operation was also created to be more dynamic, information components outputs allow us to add new results on the fly without breaking any client integrations, like those using SOAP. Fields such as CountyFIPs have already been added, and the new field UnincorporatedTaxRate will also be added here. These fields allow us to work with our clients to add custom logic or results that might not otherwise be available.

Is there a custom logic you’d like to see in FastTax? Reach out and let us know, or get your free trial key and start testing today.

Protecting Your Business from Ecommerce Fraud

Most ecommerce merchants learn the hard way; orders and registrations from fraudulent sources cause financial, merchandise, and time losses. With the rise of mobile ecommerce and the proliferation of high-profile data breaches, you’ll need the best information and tools available to combat fraud in your marketplace. The October 2017 Global Fraud Index reported a total of $57.8 billion in ecommerce fraud losses in eight major industries.

Ecommerce fraud continues to grow, and the best way to protect yourself is a good defense. Here are some of the most troubling fraud issues ecommerce merchants face, and how to limit your exposure.

Identity Theft

Identity theft is defined as the fraudulent acquisition and use of a person’s private identifying information, usually for financial gain. Financial identity theft through credit card fraud is what most people envision when they think of identity theft.

Identity thieves use a person’s identifying information, such as name and address, or an existing credit card to make a purchase on your website. Frequently, this data is acquired in a breach or skimming scam and sold on the black market before a victim even knows they’ve been compromised.

DOTS Order Validation can help identify if a user is who they claim to be by cross-checking the information provided at the point-of-sale, such as Ship To and Bill To address, phone number, and Banking Identification Number (BIN). IP address location is also compared to the billing and shipping addresses to determine if the order should be flagged.

Order Validation assigns individual quality scores to each input and a composite quality score to the overall transaction. You determine your quality score threshold, which is used to flag suspicious transactions for your team to review or reject.

Here are a few examples of transactions that might be flagged for additional review:

  • Phone number not matching the name and state on the order
  • Issuing bank (via BIN) in a different country than shipping address
  • IP location not close to shipping address

Your team can review and manage flagged transactions before the order is fulfilled.

Chargebacks

A chargeback occurs when a customer disputes a transaction and their payment is returned to their account. Sometimes this is referred to as “friendly fraud,” meaning it was a misunderstanding on the part of the consumer. Perhaps they didn’t read the fine print to see that they were signing up for a subscription with recurring fees, for example.

Frequently, chargebacks are caused by a fraudster either using stolen financial information to make a purchase or by lying and claiming they never received the product. Friendly or not, chargebacks cost your customer service team time, both interfacing with the customer and researching the issue.

Chargebacks are particularly nasty because you lose product, incur shipping costs, chargeback fees AND they hurt your standing with creditors over time. If your business reaches the high-risk threshold for your industry your processing rates will increase, or worse – your processor could drop you.

DOTS Order Validation can again flag risky transactions by cross-checking customer information and location elements through more than 200 proprietary tests, resulting in a quality score based on the validity of the information. Order Validation also provides a record of the order with all the information you need to argue a chargeback should one occur.

Order Validation also helps your customers correct typos in shipping info at the point of entry, so you can avoid chargebacks from misdelivered shipments and any related customer service headaches.

High Risk Cards

With the rising sales of prepaid credit cards and gift cards, the frequency of scams involving these cards has risen. There are many types of prepaid and gift card fraud, involving both the sale or loading of cards, and using prepaid or gift cards to make a purchase. High risk cards can cost you on either end of the transaction.

High risk cards can also hurt you if your product or service is offered on a payment plan. The first payment on a prepaid card might be approved, but subsequent payment transactions could return insufficient funds. Not only do you have product loss, you’ll incur additional costs attempting to collect the debt internally or settle for a fraction of the debt through a collections service, if you can collect at all.

DOTS BIN Validation uses the Bank Identification Number (BIN), comprised of the first six digits of a card number, to identify the issuing bank and card-type, including those higher risk prepaid and gift cards. Cross-referencing the BIN with user phone and address information can help you identify a high-risk transaction.

Your team creates protocol to manage these transactions, such as:

  • declining prepaid cards outright at point-of-sale
  • requesting a secondary form of payment in real-time
  • simply flagging the order for review before fulfillment

BIN Validation also provides the name and phone number of the issuing bank, so you can call to verify flagged transactions.

Validation services help your team stop wasting time identifying and troubleshooting fraudulent transactions, and spend more time managing transactions flagged as high-risk before they become a problem.

It’s increasingly important to protect your business from fraudulent transactions. Implementing an API can literally stop fraud before it even begins, right at the point of sale, and in real-time. Learn more about how Order Validation or BIN Validation can help you prevent fraud and enjoy the benefits of improved customer satisfaction and more efficient resource management.

What the US Supreme Court Sales Tax Ruling Means for You

If you are an online retailer, your world just changed in a big way.

In a narrow 5-4 decision, the United States Supreme Court recently ruled that states now have a right to force out-of-state business to collect and pay sales taxes on sales to their customers. This means that if you do business nationally, you may soon be responsible for sales taxes in any state where you have customers. This article is a guide to how this new ruling may affect you, and what you can do about it.

Online sales tax collection: How we got here

First, let’s start with a little history.

Until recently, out-of-state sales taxes were not an issue for many businesses. According to a legal precedent set in 1992 in the Quill Corporation vs. North Dakota case, businesses were not required to collect sales taxes from out-of-state customers, unless you had a physical presence or “nexus” in that state. (Note that this only applied to collecting these taxes: consumers have always technically been responsible for paying them, albeit with a sketchy patchwork of enforcement.)

This latest Supreme Court ruling in Wayfair vs. South Dakota overturns this precedent, on the grounds that it no longer reflects the economic reality of today’s massive online retailing environment. Quarterly retail e-commerce sales have grown nearly fourfold over the last decade to just under US $125 billion per quarter in Q1 2018 (and a record $452 billion annually in 2017), while annual sales are projected to nearly double to US $638 billion between 2016 and 2022 – on the order of 20% of total retail sales.

These figures represent a lot of tax revenue for states to leave on the table, and few states want to see these revenues decline every year. And in recent years, 31 states have found loopholes for collecting these taxes anyway, by either tightening the definition of “nexus” (for example, paying commissions to referral websites in that state) or requiring documentation and reporting of large purchases. But now, the Supreme Court has cleared the way for any state to simply require sales tax collection.

How this ruling will affect your business

So what will the impact of this ruling be on you and your business? The answer is, “it depends.”

For now, everyone is waiting to see how states will respond to this new ruling. New legislation will take time to be crafted and approved. And small business may catch a break: for example, in the case at hand before the Supreme Court, South Dakota only required sales tax collection for sales volumes in excess of $100,000 or 200 transactions per year. But given how 40 states had petitioned the Supreme Court to rule in favor of this – and bricks-and-mortar businesses have railed against the unfair tax advantages of online sales – it is a safe bet that more sales tax collection with be in the future of many businesses.

Another wild card will be how states treat tax rates for out-of-state purchases. Inc Magazine points out that there are currently close to 10,000 separate taxing jurisdictions in the United States, giving one example of how sales in Chicago require the collection of four distinct taxes – a city tax, county tax, state tax, and an additional “special” tax. States may mandate the use of the same tax levies as in-state purchases, although there have also been calls to simplify out-of-state sales tax rates.

Automation to the rescue

Needless to say, this ruling promises to increase the costs and complexity of selling products across state lines. But for most businesses, the rational choice is to automate the computation of sales tax rates. Service Objects’ DOTS FastTax service provides real-time sales tax data based on your customer’s contact information. Synchronized with tax authorities nationwide, FastTax integrates address validation and geolocation to guarantee accuracy, in a world where tax rates can very from street to street.

We can’t stop the evolution of retail buying patterns and e-commerce. Nor can we control what happens with sales tax policies from here. But we can make both of these things much less frustrating, with solutions that integrate directly with your CRM or marketing automation software. Contact us today to learn how FastTax can help put much of your tax compliance on autopilot, now and in the future.

Power Up Your Ecommerce

Some things are just better together. Like milk and cookies. Or peanut butter and jelly. Or, if you do online sales and marketing, ecommerce platforms and data validation services.

Integrating live, real-time validation services right into your ecommerce platform is easy to do, and gives you a whole host of benefits including promoting sales, preventing fraud and ensuring top-notch customer service and product delivery. This article explores a rich smorgasbord of benefits you can engineer into your own shopping cart platform – adding any of them will make your life easier:

Localize the online shopping experience

Even before a customer has a chance to look at your online store, you can curate its contents based on their location, using IP Address Validation to see where they are coming from. Detect their region or country and customize the language, currency and taxes for your online store to match. Or use their location to offer a ski sale for Colorado and surfboards for Hawaii. Geolocation can also be used to change your product mix to match local regulations and sensibilities. Another use we have seen is presenting customers with the appropriate terms of use and privacy policy based on their location, helping you maintain privacy compliance.

Keep online fraud at bay

Our IP Address Validation tool also lets you detect the location of a visitor to implement additional security rules for high risk countries, such as only allowing certain types of payment or restricting sales to high-fraud destinations. You can also compare the location of the IP address against the billing and shipping address, and flag discrepancies for further review.

Other tools to help reduce online fraud and chargebacks include:

  • Using BIN Validation to identify high risk cards like prepaid and gift cards, especially for multi-payment and membership products and services. This tool can also help you compare the issuing bank and country with the billing and shipping location.
  • Using Email Validation to flag questionable or fraudulent email addresses.
  • Using GeoPhone Plus to match the address for a customer’s phone number against their billing and shipping details.

Finally, our advanced Order Validation tool is a comprehensive and composite service for fraud monitoring, performing multi-function verifications including address validation, BIN validation, reverse phone lookup, email validation, and IP validation. Our proprietary algorithm performs over 200 tests and returns a 0-100 quality score on the overall validity and authenticity of the customer, flagged for pass, review or fail.

Get accurate sales tax information

For customers in the United States and Canada, our FastTax product can provide you with up-to-date sales tax rates, as well as identify the correct tax jurisdiction and boundaries based on location. In some jurisdictions tax rates even vary on different sides of the same street, and we can catch this!

Ensure deliverability

By checking addresses, you can ensure cost-saving delivery rates, avoid returned shipments, and ensure customer satisfaction by getting their order to the right place on time.

Our flagship Address Validation services for the United States, Canada and international addresses validate and correct addresses in real-time to ensure customers have entered a correct (and deliverable) address for the USPS, FedEx and UPS. Our US service is CASS certified and includes Delivery Point Validation (DPV) to verify an address is deliverable, Residential Delivery Indicator (RDI) to identify residential versus business addresses, and SuiteLink (SLK) to add secondary suite information for businesses.

For Canada, we can validate and correct addresses whether they are in English or French, with an output that meets Canada Post standards. For international addresses, we can instantly correct, standardize and append addresses for over 250 countries, adapted to each country’s postal formats and cultural idiosyncrasies. You can also use our address validation tools to create an address suggestion tool that includes validation.

Use the right delivery approach

Another use for US address verification is that it can identify general delivery address (i.e. PO boxes). Some sellers choose not to deliver to PO boxes, present different shipper options, or ask the buyer for a different address. Conversely, it can also detect incorporated areas versus unincorporated areas where the USPS will not deliver, allowing you to create logic that doesn’t present the USPS as a delivery option for these types of addresses.

In addition to improving deliverability, these verifications can also improve your bottom line by keeping more orders in your online shopping cart: a frequent customer complaint is being told that they cannot order from a site because USPS-only verification logic says their address is undeliverable. UPS and FedEx can normally deliver to most US doorsteps, and our capabilities can help you close these sales as well.

Ensure accurate email addresses

Our Email Validation service helps make sure that you capture the correct email address at the time of entry, ensuring that all future communications reach the customer. It catches common typographical errors (like gmial.com instead of gmail.com) as well as bogus email addresses. And when accounts are created using the customer’s email address as the primary key or account id, this tool helps ensure that you can catch mistakes while they are still easy to correct.

Improve your customer service and marketing

The benefits of integrated data validation don’t stop when an order goes out the door. Regular validation and cleaning of your contact data, for customers and prospects, will streamline your future marketing efforts – not to mention helping you comply with consumer protection and privacy regulations. And our customer insight and demographics tools can help you leverage this contact data as a valuable asset for serving your customer base even better.

For each of these capabilities, it is easy to integrate our services into almost any ecommerce platform. Most of these systems offer a plugin, RESTful API, or exposed interface to integrate with our services, including cloud connectors and web hooks, and any application that can call a web service can obtain output from our services in either XML or JSON formats. And we recognize that not all shopping carts are built alike, with needs varying from mom-and-pop online stores to full-scale enterprise level platforms, so take advantage of our extensive documentation and support to get you going.

Of course, our tools also stand alone, with convenient batch processing options for cleaning up legacy data in list form as well as quick lookup capabilities. But if you have an automated solution for your ecommerce capabilities, our services can power up the accuracy, quality and productivity of your marketing and sales efforts. Learn more on our website, or contact us anytime to learn more!

Do we support your ecommerce system? Yes we do!

Here is a list of many of the popular ecommerce systems that we interface with.

2Checkout (formerly Avangate)LemonStandSpark Pay
3D CartMagento (recently acquired by Adobe)Squarespace
Big CartelMicrosoft Commerce ServerSuiteCommerce
BigCommerceMivaSymphony Commerce
CloudCrazeOpenCartSystum
CommerceHubOracle Commerce CloudVolusion
DemandwareosCommerceVTEX
Drupal CommercePaddleWebSphere Commerce (WCS) (IBM)
EcwidPrestashopWeebly
FastSpringSalesforce Commerce CloudWix
InfusionSoftSAP Hybris CommerceWooCommerce (WordPress plugin)
KiboShopifyX-Cart

And new interfaces are coming online all the time, so if you don’t see yours on the list, talk to us!

 

 

Online Fraud is Growing. What Can Your Business Do?

What is one of the biggest growth industries in the United States today? Hint: It isn’t something most of you would want your kids to major in at school, unless you want them to go to the state pen instead of Penn State – because this rapidly growing industry is online fraud.

The Costs of eCommerce Fraud Are Staggering

Estimates vary, but recent figures from DigitalCommerce360 project the value of eCommerce fraud nearly doubling from US $10 billion to $19 billion between 2014 and 2018, as the eCommerce market continues to grow from a historic peak of US $2.3 trillion in 2017. One particular area of fraud, account takeovers, jumped 45% in Q2 of 2017 alone according to the Global Fraud Index, and these fraudulent pirated accounts represent one of the top three types of online retail fraud.

A subtle but equally important issue is what the fear of online fraud costs you and your business. According to a recent fraud benchmarking survey from CyberSource:

  • Domestic and cross-border orders have exactly the same rates of fraud among companies surveyed – just under 1% – however nearly twice as many cross-border orders get rejected, costing valuable revenue as well as damaging customer relationships.
  • The costs of manual transaction review are one of the major financial consequences of online fraud. Nearly 80% of companies conduct manual reviews, impacting an average 25% of their transactions – and yet nearly 90% of these transactions are ultimately accepted.
  • The costs of manual review hits smaller companies particularly hard, where companies under US $5M in annual revenue review nearly six times the percentage of transactions (47%) as companies greater than $100M (8%).

The uptake of all of this? Guarding against eCommerce fraud is really a two-pronged effort: reducing online fraud itself, and reducing the revenue lost to the indirect costs of fraud. For both of these issues, the key is implementing effective automated solutions.

Technology Plays a Key Role in Preventing Online Fraud

According to the CyberSource survey, companies themselves rate three technologies among their top weapons against fraud:

Address verification: making sure an address is real, valid, and corresponds with the person making the order

Credit card number verification: making sure a credit card is legitimate and properly owned

Fraud scoring models: coming up with a quantitative score based on multifactor analysis

Other tools fall into the category of leveraging existing customer data, such as credit history checks, customer order history, or two-factor phone authentication using previous device information on file.

Cyber-fraud is growing explosively nowadays because the market for it gets more lucrative every year, and combating it requires tools that keep you one step ahead of the fraudsters. Service Objects’ fraud prevention capabilities have the advantage of leveraging authoritative up-to-the-minute third-party data, such as USPS CASS Certified® address validation capabilities, global address validation that verifies and corrects international mailing addresses to the unique requirements of each country’s postal address formats and cultural idiosyncrasies, and IP validation that helps you ensure that the origin of an online order correlates with billing and shipping locations. In addition, we offer lead and order validation capabilities using multi-function verifications that give you a quantitative quality score you can use to automate your order processing decisions.

We offer a free consultation to help you determine what tools can help protect your revenue stream. Contact us today to learn what we can do for you.

Improving Customer Satisfaction Through Data Quality

“Online retailers of all sizes are constantly under attack by sophisticated fraudsters. In fact, credit card fraud costs US online retailers an estimated $3.9 billion each year.” – Geoff Grow, Founder and CEO, Service Objects

At Service Objects, we know that data quality excellence is the key to helping retailers feel confident about improving delivery rates while reducing fraud associated with vacant addresses, PO boxes and commercial mail handlers. This, in turn, helps maintain higher customer satisfaction ratings among your legitimate customers.

This video, featuring Service Objects’ Founder and CEO, Geoff Grow, will show you tools you can use to improve the deliverability of your products and combat fraud. You will learn how to validate addresses against current USPS certified address data to prevent undeliverable and lost shipments, as well as how to validate a customer’s IP address against the billing and shipping information they provide, using data from over many authoritative data sources to stop fraud before it happens.

 

Your Business and The Holidays: A Christmas Carol

Christmas is, of course, a major religious holiday celebrated around the world. And also one of the busiest and most profitable times of year for your business. But do you know how it first got that way?

Many people credit author Charles Dickens and his story A Christmas Carol with helping Victorian England, and later the world, see Christmas as a time of gift-giving and family connection. His mid-1800s story focused on how a lonely miser, Ebenezer Scrooge, learned to avoid the fate of his partner’s eternal torment when the ghosts of Christmas Past, Christmas Present and Christmas Yet to Come taught him to focus on what really matters – other people.

With apologies to Dickens, we feel that the three ghosts of Christmas have a valuable modern-day lesson to teach us about creating a happy holiday season for everyone, in the middle of your biggest crunch time. (Fair warning: it involves data quality.)

  • First, the ghost of Christmas Past showed Scrooge what life was like once upon a time at the holidays, when employees were happy and the company took good care of everyone – before Scrooge eventually presided over a joyless, high-pressure workplace. Just like what happens when your own performance pressures put data quality on the back burner, something a recent executive survey showed as being a major concern.
  • Next, the ghost of Christmas Present warns Scrooge that unless he changes his priorities, his neglect of others will harm people like the humble Bob Crachit and his ailing son Tiny Tim – much like your business can ruin the holidays for your customers when bad contact data causes service failures.
  • Finally, the ghost of Christmas Yet to Come paints a grim picture of a world where Scrooge is dead and no one cares – the same way that people turn away from your business and never return when you don’t deliver what you promise.

What do these lessons have to do with your own holiday rush season? Everything.

You see, most people in most businesses focus on doing their individual jobs, like entering orders or shipping products. But what about the greater mission of making sure that everyone gets what they need from you, particularly at the holidays? Too often, that is someone else’s job. Which means it becomes no one’s job. And service failures, such as packages that never arrive or contact information that isn’t correct, just become a fact of life that gets tolerated by everyone.

The ghosts of Christmas taught Scrooge that he had to learn to care, or face the consequences. The same is true for you and your business at the holidays. And the best way to care for your customers – particularly when things are at their busiest – is to put processes in place that make sure the customer comes first.

At Service Objects, we help the holidays go smoothly with tools that range from simple address validation – fueled by up-to-date real-time data from the United States Postal Service and others – all the way to complete order verification capabilities that authenticate customers and guard against fraud. We can even append information such as phone numbers to your contact data, to help you keep in touch with people, or gain geographic and demographic insight that lets you serve people better in the future. All through automated processes that run seamlessly in your applications environment.

The lesson for Christmas, then and now? Don’t be a Scrooge. And let the holiday season be a time when your business shines for everyone.