When U.S. online merchants were asked to name their biggest concern about accepting global payments, the largest group, or 40%, cited managing fraud, CyberSource Corp. says in a recent study. The next-largest group, or 17%, cited implementing and managing connections with payment processors in foreign countries.
CyberSource, a provider of payments processing and fraud management services, based its results on responses from 115 merchants surveyed last month.
Doug Schwegman, director of customer and market intelligence, says he was surprised that managing fraud scored the highest among respondents and that he had expected the top concern would be navigating legal and underwriting requirements of foreign markets-an area that ranked third and was cited by 15% of respondents. “Fraud should still be in the top three, but many merchants probably haven’t researched legal requirements,” Schwegman says. “It’s a big administrative problem and can slow you down in terms of getting into a foreign market quickly.”
Following are the study’s most frequently cited concerns about global payments, ranked in descending order with the percentage of respondents:
• Managing fraud risk, 40%
• Implementing/managing connections with payment processors, 17%
• Navigating legal and underwriting requirements, 15%
• Deciding which payment methods to offer customers, 14%
• Managing reconciliation of payment records, 6%
• Managing security and privacy issues, 4%
• Other, 4%