The Benefits of Know Your Customer (KYC) in an Online Store

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 KYC 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 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.

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.

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.

In all you do at an online store, ensure that there are measures put in place on the platform you are trading on. AgroDomain is particular about your safety using our platform. To help us help you better, do your KYC when it is demanded as without it, you won’t be able to trade on the platform keeping in mind the convenience of our customers.

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