In business, one of your main goals is to find a balance where you can maximize both customer experience and revenue in order to keep growing in the future. In order to do so, you need to evaluate the efficiency of all of the systems in your business and make necessary adjustments. This can be difficult at times, especially when you work with consumers over the Internet and constantly need to fend off attacks from potential fraudsters looking to beat the system. However, with an identity verification program in place, you will get peace of mind knowing that you are working with legitimate customers that are helping you meet your business goals.
One of the biggest reasons that companies lose out on potential revenue is fraud. As criminals posing as customers attempt to gain access to an account, organizations must continually devote resources to preventing fraud and cleaning up after it occurs. Identity verification helps combat fraud by giving companies more confidence when opening accounts with new customers or processing transactions with existing customers. Identity verification systems authenticate information provided by customers and make it more difficult for potential fraudsters to obtain and use legitimate accounts.
You will be able to increase revenue by not having to deal with as many chargebacks due to fraud and other fees associated with lost or stolen merchandise.
Validate More Legitimate Customers in Less Time
Identity verification systems also make it easier to validate new customers. When you are doing business with someone for the first time, you need to ensure that the information they provide is accurate. By using unique identifying information available from trusted sources, businesses are able to cross check details from a customer so they can verify their identity online or over the phone without issue. Identity verification systems get the job done more quickly so that you can validate more legitimate customers. This leads to greater revenue for your business as well because it reduces the need for manual verification that is costly and requires much more time and resources spent.
Remain Compliant with Regulations, Especially Overseas
When dealing with high-risk transactions, including those with international customers, you need to be certain that you are meeting all of the applicable regulations. Identity verification systems keep you compliant with Customer Identification Program (CIP) and Know Your Customer (KYC) rules in the United States, while international solutions can be tailored for compliance in all of the countries in which you operate. This helps you cut down on costs and ensures that you do not lose money by having to pay fines and other penalties.
High-risk transactions are also made easier because you can verify the identity of the individual you are doing business with to ensure that you aren’t putting your business in a vulnerable position. You will have more confidence when completing transactions involving a large amount or high-priced goods, which in turn leads to growth for your company.
Do your research into how identity verification can help your business achieve its goals and see how you can increase revenue, reduce fraud and make things run smoother moving forward.
Written by Britni Zandbergen, Senior Director of Marketing at Idology. Britni has years of experience in identity management as well as dynamic SaaS solutions.