Internet is in-thing due to wide spread usage of smartphones and tablets with 3/4G connectivity. We used to purchase all physical and digital products using net banking, SMS banking and most often credit cards scanning through camera and relevant software.
It is easy to grab a fraudulent purchaser on physical store or mall, but extremely difficult when she make a purchase of digital products like common e-books online. When we encounter such fraudulent purchaser first time we might not have idea why they are spending bucks on our digital products like an e-book teaching graphics designing websites and for iPhone app development.
Reason to Buy Your Digital Products
Some times we notice some good purchasing figures, from an unexpected quarter, and in unexpected manners. The fraudulent people making purchase of your useless (in their sense) e-books in bulk, just sake of validating their stolen cards/credit cards. Once they get success on your online store, they begin using that cards in physical store freely as they have valid purchasing history on your e-store or online website.
Now, they begin spending money from the stolen cards and the banks related that cards begin charging the account of real account holders. If there are smart account holders and come to know immediately that their account is credited by fraudulent people, they immediately reports their banks to get refund as they have acknowledged banks in advance and want their money back by recharging your account.
When this charge backs occur, you are not only lost the money spend on fraudulent purchasing, but also have to pay charges banks or merchants in between have made. These amount creating a panic for you and your finance at big level if lots of fraudulent purchasing taken place.
How to Save from Frauds
This very important to know how to save ourselves from the fraudulent purchasing without waking up whole night and day on our online store. Fortunately, today most of major payment gateways, merchants, etc. have highly secure mechanisms with advanced encryption. Therefore, running software to find out which stolen credit card is accepting by our checkout process is delivering direct warning to the payment gateways hence banks and finally security agencies.
There are other fraud prevention agencies and methods like Gumroad for starters for excellent security measures. With Gumroad you not only early detect the frauds, but also successfully claim against the charge backs to the banks and save your hard earned money and valuable time. However, you should not stop selling online digital products due to messing up with such frauds, instead find out smart mechanisms to deal them effectively. No doubt, you have to pay for Gumroad like agency for their services on each transaction, but you would have relief against big scams on Internet.
If you have such horrible experiences of online frauds when going to selling a digital products, you can go straight to the comment box and express them for sake of others like me!
Thanks in advance.