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Sarah UKFast | Account Manager

Online firms believe that fraud is not their responsibility

Ninety-nine percent of UK's small online businesses believe that fraud is not their responsibility, as a survey commissioned by (, reveals today. The 350 small online businesses surveyed believed liability for fraud lay elsewhere, including:
  • Banks (35%)
  • Bank and credit card issuers (24%)
  • The payment service provider (23%).
The tendency of small business to hold others responsible flies in the face of the fact that consumers associate bad experiences on a site directly with the merchant, regardless of fault. This reveals a worrying disconnect between the retailer's perceptions and their customers' expectations. Additional research also shows that consumers are willing to vote with their feet: just 3 per cent of online shoppers would trust a small online business with their money, preferring to shop with larger online brands. Furthermore, 81 per cent of consumers are suspicious of the security of small, unknown companies demonstrating that small online retailers have more, not less to prove. The research supports the launch of, a leading 'bank-independent' provider of online payment services, designed to help smaller online businesses level the field with blue chip online brands. With online retail sales defying the credit crunch, leaping 38 per cent to over £26.5 billion in the first half of this year (source: eRetail Sales Index), offers small businesses all the tools they need to begin trading securely online, minimising fraud and building trust with their customers. What is more, can provide small businesses with no trading history everything that they need to set up shop online within just five days. Alessandro Hatami, Managing Director of explains, "Small online businesses lack the resources of their larger competitors but have an even greater interest in ensuring their customers have the safest possible experience on their site. This situation has led to a haphazard approach to managing fraud - which is in stark contrast to what larger businesses are able to do. We have launched to help small companies level the playing field with the big brands in terms of customer security and fraud protection: the safer customers feel, the more likely they are to visit again." suggests that small online businesses implement a range of measures to secure their site, including:
  • PCI DSS - Merchants must now be fully compliant with this new worldwide data security standard or risk losing cardholder data leading to substantial brand damage, loss of customers, fines or even being barred from accepting card payments; using a hosted payment platform means merchants are compliant by default
  • 3-D Secure, ("Verified by Visa" and "SecureCode") - this enhanced buyer identification process mitigates risk and removes the liability for fraud entirely from the shoulders of merchants
  • Use an Address Verification Service to confirm the identity of the person claiming to own the credit card. This is done by checking the billing address of the credit card provided by the user with the address on file at the credit card company
  • Comparing the IP address of the PC at the customer's actual location with billing and shipping addresses

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