Unless you rarely venture online, you would have heard of Multi-Factor Authentication (MFA). In MFA, the user is required to provide 2 types of data to authenticate their identity. This is commonly used during logins to websites as well as during online purchases.
The first part of the MFA would be some data known to the user while the second part involves a code sent via SMS to the mobile phone number provided. When the two parts are combined, there is higher likelihood that the person involved is actually who they claimed to be.
FraudLabs Pro SMS verification
In FraudLabs Pro, the MFA of choice for screening fraudulent online orders is the use of a One-Time Password (OTP) sent via SMS to the end user. When a customer makes a purchase on an online website which uses FraudLabs Pro’s SMS verification, during or after the checkout process, an SMS can be sent out to verify the phone number given. In that SMS is the OTP which the recipient needs to key into the order page to complete the checkout.
For fraud screening purposes, the phone number can hint at the location of the user. Since a mobile phone number can be traced to a person by law enforcement, this discourages fraudsters from trying to make purchases with stolen credit cards. If the fraudster did not use his own mobile phone, then the purchase would not go through successfully as he won’t receive the OTP.
As an online merchant, it is highly recommended to utilize MFA as part of the fraud detection routine. The cost of sending an SMS is negligible compared to the cost of absorbing a chargeback from the real owner of the credit card.
With the SMS verification, the merchant does not have to manually contact the buyer for order verification. This is particularly useful for merchants of digital goods as the checkout can be completed automatically once the customer has keyed in the OTP.
Another useful feature of the SMS verification plugin is the ability to customize when to send the SMS, such as for a first time buyer or a free email user, etc. Such is the flexible nature of the SMS verification plugin that most merchants will find it beneficial as part of their checkout process.
SMS verification is available on multiple shopping platforms
Online merchants can rest easy if they are on platforms such as WHMCS, Shopify, WooCommerce or Magento. FraudLabs Pro has easy to use SMS verification plugins for the listed shopping carts. All the merchants need to do is sign up for a free FraudLabs Pro Micro plan and pay a little extra to get the SMS verification.
Would you rather spend a few cents to further insulate your online store from fraud? Or would you rather accept hundreds or thousands in refunds and chargebacks? The answer is very obvious.
Get the plugins for our supported shopping carts below:
Fret not if your desired shopping cart is not currently supported by the FraudLabs Pro SMS verification plugin. You can easily integrate into your own cart using our REST APIs below: