eb retailers usually take it on the chin, when it comes to losses from online credit card fraud. According to CyberSource (www.cybersource.com), a provider of secure electronic payment and risk management solutions, in 2006 Web merchants in the US and Canada will lose $3 billion to online payment fraud.

Fraudulent orders can be presented to merchants in two ways: as a chargeback from the merchant bank or as a direct request from a consumer for credit. In 2006, 65 per cent of fraud claims were from customer credits, compared with 35 per cent from chargebacks. By dealing directly with customers, retailers avoid penalty fees levied by the credit card issuers and show losses that understate the real amount of fraud.... more