Business Development

Verifying first-time clients for their payments for security purposes

Anonymous

October 2nd, 2017

We've launched a business recently and we're weary that (while we have yet to have a negative experience) we have started the launch a few months ago calling the number associated with the payment card used to verify the legitimacy of purchases and ensure that nothing fraudulent has occurred such as someone paying for services with a stolen card.


While we have our own format we're interested in both perspectives of both businesses and consumers. Starting with 'Business' or 'Consumer', what is your reaction to this? If you find this desirable what would you consider proper etiquette and why? What would you consider to be the pros and cons?

Kirk Franzen Cofounder & CTO @mycrowd (acquired), Engineering Leader, Entrepreneur, Scuba Diver, Basketball fan

October 2nd, 2017

Hi there,


This is a problem faced by almost every company selling services online, particularly software as a service.


Adding security and validation into your on-boarding or payment flow can create friction and cause people to bail out, but is very necessary to ensure you are only billing valid transactions.


To me as a consumer, the answer depends a lot on how this effects the flow of my purchase. If you are allowing me to complete the transaction and giving me confirmation, but then calling my to verify before actually processing my payment I am probably not too bothered. Though what happens if I do not answer?


In general I think people may find it a bit invasive to receive a phone call just to verify their transaction. This could also feel a bit like a scam or phishing given how much people hear and worry about identity theft and getting hacked.


There are quite a few providers of payment processing out there at this point and most of them have some mechanisms for verifying payment details and ensuring transactions are valid.


From a business and consumer perspective I would recommend exploring some of those options. I think they could help streamline the process and make it more scalable and at the same time reduce friction for your customers.