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While growing to over $1 billion over its first five years, Newegg has learned how to maintain an online fraud rate for orders of 0.08% or less, vice president Howard Tong tells InternetRetailer.com.
The average rate of online payment fraud as a percentage of orders is about 1% or more, according to CyberSource Corp., a provider of credit card processing and risk management software and services. At Newegg, the retailer has kept its fraud rate under 1% by expanding its fraud prevention staff, working with payment processors on risk management techniques and constantly tweaking its own software and manual processes for checking order transaction data, Tong says.
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