Dr. Glenn Gearhart CEO of World Market Vendor Services, Inc. provides News and Commentary

Save Money and Reduce Fraud With Irrevocable Online Cash Payments

Gain 8% to 15% added income on each eCommerce sale with online cash payments

Fraud Losses

I reviewed a CyberSource study covering the year 2011. It reported the average fraud prevention procedures result in the rejection of from 3% to 6% (lost sales) of potential sales at eCommerce sites in the US and Canada. These rejections are made against good qualified customer’s that would NOT commit fraud. The report also showed that the actual fraud losses (likely under reported) were from 1% to 1.5% of gross sales.

Therefore, using these average values from the Survey, fraud factors are costing eCommerce businesses (your business) in the range of from 4% to 7.5% of gross sales. That may seem reasonable or even insignificant, but, in fact, it is very large. It is hurting your business significantly.

Let’s look at this fraud cost in the context of a typical retailer who is operating on a 50% markup, on goods sold. The eCommerce merchant has 50% of the product sales price to pay all of the costs and expenses and make a profit. What does it mean to have 4% to 7.5% taken out of that 50% operating percentage. It is taken out, either because the merchant had an actual fraud loss or because the merchant lost a sale that should have occurred. It was lost by customer rejection or sale refusal because the merchant’s fraud loss screening system said the sale was a high risk and rejected the sale.

Fraud Losses
At 4% of sales, the negative financial impact is 4/50, or 8% of your earnings. Would receive 8% more in earnings and reduced expenses delivered as cash to help your company’s growth and profits? Sure it would, and it would be bad business management not to accept these positive benefits. Next consider an example with the fraud at 7.5% of sales. The negative financial impact is 7.5/50, or 15%, of your earnings.

If I told you, there is a simple, easy and effective way to remove the actual fraud losses and to remove the fraud prevention costs that are blocking legitimate good sales, would you be interested?

Will I can tell you there is such an eCommerce service. It operates on a cash-based online payment process rather than the standard credit –based system. That allows the immediate elimination of the payment fraud and the need for fraud loss prevention activities. This superior global eCommerce service is World Market with Pay-Online-With- CASH,™ and you can start using it today as an additional fraud free distribution channel for the sales of your products..