Eliminating chargebacks in travel with cash
Robert Albrecht, Head of New Business, Paysafecash, explains how online cash payment solutions helps travel companies combat credit card fraud, whilst also reaching out to new target customers.
Is the rate of card-not-present (CNP) fraud a serious concern in the travel industry?
It is, in the most part because credit cards are by far the most popular payment method in the travel industry, and that reliance on credit cards results in higher fraud rates than other industries as an unwanted side effect. A study from 2017 estimated that the costs for travel intermediaries related to fraud was US$21bn, and that this has the potential to increase to US$25bn in 2020.
What are the most popular fraud schemes in these industries?
Popular fraud schemes include stolen credit cards, stolen payment information, or stolen security credentials that are then used to defraud the travel agency or airline, resulting in a chargeback.
Travel agents and airlines go to great lengths to protect themselves against any kind of fraud. According to a CyberSource study from 2018 conducted specifically in the airline industry, 82% of travel companies surveyed reject a booking when they suspect fraud. The good news, however, is that 46% of them also take the extra step of suggesting another payment option.
“82% of participants do reject a booking when they suspect fraud.”
“The moment the barcode is paid we guarantee 100% of the money to our partners.”
“We constantly keep ahead of regulation to ensure a sustainable partnership.”
How else does Paysafecash combat fraudulent activity?
We constantly monitor all of our transactions and use all the data points we can collect in order to derive information and context. This is how we can ensure that we are best prepared for any kind of fraudulent behaviour and are prepared to stop transactions and even help law enforcement agencies in prosecution.
Do online cash solutions have a role to play in the digital economy as we move towards a cashless society?
The idea that we are moving towards a cashless society is proved to not be true when you take a look at the stats on global presence of cash and its usage. For example, the value of the cash in circulation is growing by almost 8% per year in the Euro zone; in Austria, 85% of all transactions are paid in cash, and in Romania 85% of all B2C online transactions are paid in cash.
Cash is clearly the preferred payment method for a large percentgae of consumers. Millions of people depend on cash as their only source of finance and even more use cash as their primary source of payments because it is the method that they trust the most.
Is security the main reason the number of users of online cash solutions is growing?
Security seekers value the independence from credit cards or other options requiring the disclosure of information when making payments online. Also it is important to state that cash is universal which is another reason it is so appealing. By offering a single payment option an online business can reach the largest number of potential customers, regardless of how financial included they are or what their preferred payment method is to that point.
So Paysafecash is a great additional payment option at the checkout?
Exactly, that philosophy plays to Paysafecash´s strengths. It is helping merchants to address the widest possible target groups by enabling them to pay in cash and protecting them against fraud-related costs and money laundering.