Identity verification allows you to ascertain that a person is who they claim to be. It’s a crucial requirement in most procedures and processes, online and offline. This ensures that no one can go through a process on behalf of someone else without authorization, commit fraud, or create false identities for malicious gain.
Ignoring identity verification leaves sensitive data vulnerable, allowing hackers to assume your identity, destroying your reputation through fraudulent loans, credit cards, and purchases. This can even ruin your credit history. Identity verification can be done face-to-face or electronically. Discussed below are the benefits of identity verification.
1. Regulation compliance
Regulatory compliance is mandatory for every business because it’s their responsibility to protect customers’ sensitive information, including credit card data, driver’s licenses, and social security numbers. In Europe, the PSD2 is a new regulation for electronic payment services that uses strong customer authentication to make payments more secure and protect consumers from fraud. Should your customers’ data be stolen due to being non-compliant, your business risks paying penalties and fines, losing customer trust, and hurting their reputation.
For eCommerce businesses that accept credit card payments, PCI in compliance may cause them to lose their merchant account, meaning they may not be able to accept credit card payments. Consider making identity verification a part of your business culture by investing in modern ID verification technologies such as a driver’s license scanner to remain compliant.
2. Build customer loyalty
Most people have turned to the Internet for their consumer needs, resulting in high fraud cases. This requires you to establish more security measures to protect customer data and your business from payment fraud. Identity verification lets you keep customer data secure, ensure that you’re onboarding real customers, and provide a smooth customer experience to increase conversions.
3. Improve business reputation
In today’s business world where personal information and identities can be stolen for malicious activities, customers are very skeptical about the brands to trust with their sensitive data. They’ll only choose to transact with businesses they believe can protect their personal information.
Verifying your customers’ identity during the onboarding process and transaction processing enables you to reduce fraud and keep your customer’s data safe, helping you validate your reputation to make customers trust your brand, contributing to more sales and growth.
4. Prevent costly chargebacks
The surge of eCommerce businesses has led to an increase in the use of credit cards for online transactions, increasing fraud cases, especially because many transactions are in the card-not-present category. This leads to the fraudulent use of credit cards to buy goods online. When the card owners find out, they cancel the transactions, leaving the business liable for the chargebacks.
To prevent these costly chargebacks, businesses should revise the card-not-present transaction identity verification protocols to include additional security measures. Consider solidifying your identity verification process by integrating biometric verification with two-step authentication or facial recognition processes.
5. Improve customer experience
Providing a great customer experience means reducing or eliminating any barriers consumers might face when buying from your business. Today’s customers appreciate excellent customer experience, and they can hop from one company to another in search of it. To provide a good customer experience, offer your clients a quick, seamless onboarding process and instant access to the products and services they need. Incorporating biometric solutions with digital identity verification techniques like automatic scanning and facial recognition can help streamline the onboarding process, improving customer experience.
To delve deeper into the strategies and technologies that are reshaping customer loyalty through efficient and secure documentation verification methods, you can explore the insightful resource available at https://microblink.com/resources/blog/documentation-verification/.
Endnote
Both offline and online identity verification are essential for every business as they enhance regulation compliance, build brand loyalty and reputation, boost customer experience, and save money. Invest in identity verification solutions for these benefits and more.
