Secure Online Merchandises with e-KYC and Digital ID Verification
Selling and purchasing online has its own advantages, both for the seller and the buyer. Online merchandisers save on overhead costs such as renting or owning a physical shop and the expenditures associated with it. On the other hand, the consumer saves time and fuel cost associated with commuting to a physical store. Not to mention the convenience that comes from ordering what you need from the comfort of your home. As good as online commerce or e-commerce sounds it has its drawbacks as well, especially for the merchandiser and this is where e-KYC and digital ID verification services prove extremely helpful. As we progress through this article we will look at the types of problems that can arise in online selling in comparison to selling from a physical location. We will briefly describe electronic Know Your Customer service and how it can prevent fraud and secure the e-commerce business model. At the end, we will discuss what to look for when searching for an identity verification service provider.
Challenges Faced by Online Merchandisers
As explained previously, the benefits of online selling are many but there are some risks involved with e-commerce solutions. The chances of fraud are higher as compared to regular physical shop based selling. The reason for this is that there is no physical presence of the buyer at any point in time. The payment is usually through credit or debit cards or online payment processors. The catch here is that you cannot see the customer, whereas in comparison to a physical store a customer who makes a purchase can be verified. You can see them and when you take their signature you can match it with the one on their card. You can also check the original card owner by matching their appearance with the picture on their card (if available on the card) In the online scenario the chance of the use of a stolen card is high and it being caught in real time is low. The other is that there isn’t a solid proof of purchase that can help in the case of chargebacks. Chargebacks can result because of the use of a stolen card or even be initiated by mistake by genuine customers who might have forgotten that they made a purchase. Although online payment processors have strict checks but there is always the chance of loopholes that can result in chargebacks. What is needed here is a service that can assist in providing digital ID verification and proof of purchase. (8 tips out)
E-KYC – What is it and what are the benefits?
Electronic Know Your Customer ( KYC ) is a new age solution to an age old process that was done manually. Basically it is the process of knowing who an organisation is dealing which includes their general information and background. It is essential, especially for government agencies, banks and educational institutes. Since it helps them counter money laundering as well as identity fraud and theft.
In the age of the Internet where people value time so much more and are used to instant solutions to problems, a new quicker form was needed. This new form came in as digital Know Your Customer processes. Some governments have gone to the extent of centralising all of the citizens data and making it available for institutions such as banks, government departments, insurance companies, etc. So now all these people have to do besides signing a contract is to scan their thumb and all their required data is made available to the organisation. This for example reduces account opening times, insurance policy activation times, etc.
Securing online Merchandisers
Now in the digital age, Know Your Customer ( KYC ) and electronic ID verification has become essential for regular businesses that operate online. They are needed for the same reason that banks and other organisations require them; they deter fraud, theft and money laundering. Unlike walk-in stores, cyber stores don’t have a physical interaction with their customers, they can’t tell if the credit card they are being provided belongs to the customer who is providing it. Also they don’t have authentic proof that they actually sold their merchandise to the original customer in case of a chargeback. All of these issues and the instances of fraud have increased the demand for such verification services.
Private companies besides government departments have come in to assist such online merchandisers and fill in the gap in this sector. Known as third-party digital verification providers they offer proof of purchase solutions, identity verification, background checks and document authenticity checks. This provides a comprehensive and versatile package for e-commerce companies that they can choose from, keeping in mind the convenience of their customers.
What to Look for in a Digital ID Verification Service Provider?
Having mentioned the various benefits that a third-party KYC solution provider can offer. It is good to know what to look for before signing a contract with one, as not all identity verifiers are the same. When you start your search you will find many of them mentioning that their system is based on advanced AI and machine learning processes. That is all good, but then there are the ones that go beyond AI they include the human touch. Meaning all data that their AI verifies is revalidated by live people; this adds a double layer of checks and less chance of error.
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They say time is of the utmost important and could not hold more true for the modern day individual. People these days are used to having things done in minimum time and apprehensive of anything that takes too long. Keeping this in mind, the company that you choose must be able to carry out the verifications in the least amount of time. The best companies offer verifications in a matter of seconds and have an easy to use interface that is customer friendly. Another thing to look out for is that do they have an online verification mode. As most have offline ones, online allows you to give your customer freedom to get the verification done in real time using their webcam. Also, they should be able to provide proof of verification service such as pics or even better if they can provide a video of the entire verification process. This is extremely useful in case of charge-backs, it will give you solid proof to dispute the case.
The last point, but one of the most important is to check if the KYC company is up to date with the latest developments in the industry. A good example is the upcoming GDPR policy that enforces the data privacy of all EU citizens. If you or the company you partner up with are not compliant with this policy, it can mean massive fines for all.