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Fraud Prevention Costs Merchants 8% of Annual Revenue: Report – CardNotPresent.com

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As e-commerce merchants continue to invest in fraud prevention, those efforts cost, on average, 8 percent of their annual revenue, up from 7.6 percent last year, according to a new report… undertaken by Javelin Strategy & Research

From Fraud Prevention Costs Merchants 8% of Annual Revenue: Report – CardNotPresent.com

It’s actually nearer 10% for online-only merchants. This seems unsustainable to me, but remember I don’t understand the dynamics in the retail sector. If a lot of those online-only merchants are (just as an example) adult services then they may consider that losing a tenth of the revenue is perfectly acceptable. Nevertheless, you do have to wonder just how long the cost of fraud can continue to rise, considering that the report also says the merchants are already devoting a fifth of their budgets to fraud prevention.

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