68% Of Online Retailers Admit Payment
Fraud Threatens Business Growth
- Over two thirds (68%) of retailers admit payment fraud remains
the most daunting element of running an online business
- 60% of online retailers do not know if they are currently PCI
DSS compliant
- Three quarters (75%) of respondents intend to invest in their
online business throughout 2009
London, 19th May 2009
Whilst 75% of online retailers will invest to grow their
businesses this year, over two thirds still feel threatened by
payment fraud, a survey from Sage Pay has shown.
This, together with an increasing trend in consumer fraud
concerns, will have a defining impact on the future of online
retail in the UK.
The findings make grim reading for businesses that intend to
cash in on the high street exodus as they express an increasing
desire to invest and develop their online retail presence.
According to the research, an overwhelming majority of
respondents (68%) admitted that online payment fraud remains one of
the most daunting elements of running an online business.
Yet despite these fears, only a small proportion of online
retailers could demonstrate a clear understanding of the financial
risks and implications associated with conducting business online.
Indeed, 60% of online retailers do not know whether they are
Payment Card Industry Data Security Standard (PCI DSS)
compliant.
"Payment fraud poses a significant threat to online retailers in
the UK," said Simon Black, Managing Director, Sage Pay.
"Online retailers have become adept at driving traffic to their
websites but there is still a significant knowledge gap when it
comes to understanding and implementing payment
security. However, where retailers adopt the recommendations
of PCI DSS, fraud screening and schemes such as Verified by Visa
and MasterCard SecureCode, shopping online poses no more risk than
payments made on the high street."
Although (PCI DSS) compliance has existed since December 2004,
our latest research suggests that just over one third (39%) of
online retailers actually understand the definition of PCI DSS
compliance, while 65% of respondents do not believe that they are
personally responsible for covering the implications of payments
fraud committed on their site.
Black added, "PCI DSS compliance applies to all organisations
that hold, process, or pass on cardholder information and it has
significantly reduced the impact of credit card payment fraud
within the UK."
In 2008, the value of international internet payment fraud was
valued at almost $7bn . With an overwhelming majority (75%)
of survey respondents expressing an intention to invest in their
business throughout 2009, it is imperative therefore, that they
recognise the scale of this threat and take practical steps to
combat it and avoid inadvertently restricting future
growth.
"Over the past six months we’ve registered an increase in online
transactions year on year, despite the economic downturn, so there
is clearly an increasing appetite for UK consumers shopping
online.
"However, in order to persuade consumers to broaden their
shopping habits it’s essential that retailers demonstrate the
importance of online payment protection by taking a series of
straightforward steps to protect themselves and their customers,"
said Black.
Sage Pay provides payments services, that include fraud
prevention and PCI DSS compliance to businesses of all sizes, from
start-ups to large, well-established e-retailers that include
easyJet Plus!, National Express, LOVEFiLM and Swiftcover.
- Ends -
Notes to editor:
The Sage Pay survey was conducted in April 2009 and included the
views of over 1,000 SMEs who are currently using Sage accounting
software.
About Sage Pay
Sage Pay is the union of Protx, the fastest growing payment
service provider (PSP) and Sage, one of the UK’s most trusted
business brands. We offer our 22,000+ customers a secure payment
service for the millions of transactions that we undertake on their
behalf each year.
The philosophy that has driven us since our launch in 2001 is
still at the heart of our business – to give our customers more
than they pay for, and to make it really easy for them to do
business. We make the process of accepting payments simple, fast
and safe. Whether your need for online payment is simple, or
completely tailored, we can help to make accepting payments online,
over the phone or via mail order more profitable. www.sagepay.com/
About Sage
UK Headquartered in Newcastle Upon Tyne, Sage (UK) Limited is a
subsidiary of The Sage Group plc, a leading supplier of business
software and services to 5.7 million customers worldwide.
Formed in 1981, the Group was floated on the stock exchange in
1989 and now employs 14,800 people in its market leading companies
worldwide.
At Sage, we live and breathe business every day. Through our
people, business software, services and our partners, we are
passionate about helping businesses of all sizes achieve their
ambitions by helping them to overcome the day-to-day practicalities
of running a business, so that they can do business the way they
want to. www.sage.co.uk/
For more information, please contact:
Charlotte Speller
Email: charlotte.speller@sagepay.com
Tel: 07595 272 308
Adam Barber
Email: adam@hellochalk.com
Tel: 020 7405 0974 (ext 210)