The Merchant Risk Council (MRC), a merchant-led trade association focused on electronic commerce risk and payment strategies, has announced the results of its Annual Merchant Fraud Survey, sponsored by CyberSource Corporation. According to the MRC, "this year’s survey again confirms that MRC Platinum Members are best in class at reducing revenue losses due to cyber theft, while also leading the way in reviewer productivity for both domestic and international orders."
Key Survey Findings:
- MRC Platinum Members reported an average of just 0.9% of their total revenue lost to online fraud, compared to 1.2% for the overall sample, and 1.1% for other large non-member merchants with greater than $25 million in online sales
- MRC Platinum Members rejected just 6% of international orders compared to 8% for the overall sample, and 7% for other large non-member merchants
- MRC Platinum Members reported a fraudulent international order rate of just 1.4%, compared to 2.0% for the overall sample
- MRC Platinum Members had a 88% higher review order productivity level compared to other large non-member merchants, and were more than twice as productive as the overall sample
The survey also revealed that MRC Platinum Members use an average of 7.9 automated fraud screening detection tools. This compares to just 4.7 tools utilized by the overall sample and 6.0 tools used by other large non-member merchants.
“Cyber thieves are increasing their sophistication and determination in searching for merchant vulnerabilities,” said MRC Executive Director Tom Donlea. “The MRC provides a growing range of e-Commerce and multi-channel retailers the platform and tools to combine forces and strengthen each of their defenses. These survey results continue to validate our collaborative efforts in both fighting fraud and increasing merchant profitability.”
Full survey results will be presented by CyberSource during the Platinum Meeting portion of the Merchant Risk Council’s SOLD OUT Annual e-Commerce Payments and Risk Conference March 16–18, 2010 at the Wynn Las Vegas. The 2010 conference will be uniting over 700 representatives from the world’s top online and multi-channel merchants, credit card brands, card issuers, payment processors, risk management providers, law enforcement agencies and various consultants and educators from around the world – all with the mission of making e-Commerce safer and more efficient for both merchants and consumers.
About the Survey
The MRC Platinum Fraud Survey was included as part of the 11th Annual CyberSource Fraud Survey, sponsored by CyberSource Corporation and conducted by Mindwave Research. The survey was fielded September 10 through October 7, 2009 and yielded over 350 qualified and complete responses, of which 81 were MRC Platinum merchants. The sample was drawn from a database of companies involved in electronic commerce activities. Incentive to respondents included a summary of the research.
About the Merchant Risk Council
The Merchant Risk Council (MRC) leads industry networking, education, benchmarking and advocacy programs to make electronic commerce more efficient, safe and profitable.
Today, with the power of its member-base, the MRC is the leading trade association for managing payments, preventing online fraud and promoting secure e-Commerce. The MRC is dedicated to working with e-Commerce and multi-channel merchants, payment processors, credit card issuers, credit card companies, alternative payment providers, risk management experts, and law enforcement to make the Internet a safer and more profitable place to do business.
The MRC Board of Directors and Advisors includes: Accertify, Apple, Chase Paymentech, CyberSource Corporation, Dell Inc., Discover Network, Expedia Inc., Gap Inc. Direct, GlobalCollect, Linden Lab, Microsoft, Neiman Marcus, PayPal, Trustwave, Visa Inc. and Wal-Mart.