When you’re starting, it seems like a great idea to onboard every customer who comes along. After all, the more customers you have, the better, right? Wrong. More customers indeed mean more revenue. But only if your product is useful and your customers are happy with what they are getting.
If your product isn’t working or if your customers don’t want it, then having lots of them won’t help you at all. They’ll churn and may even publicly complain about how useless or bad your company is. That’s why it’s so important to verify every customer before you onboard them.
Identity Verification Can Help Businesses?
Identity verification is not just a trend, but a necessity for businesses.
If you have customers who are new to your brand or industry, and you don’t verify their identity, it’s just not safe for you to onboard them. Identity fraud is on the rise and there’s no sign of it slowing down anytime soon.
It is especially when there’s so much money to be made from it in the form of stolen credit card details. If you don’t verify every customer before they join your business or buy from you, then almost definitely one of these people will turn out to be an identity thief trying to steal your customers’ information (and money).
That’s why we recommend verifying every new customer with our digital ID verification service before they can use any part of your platform. It can include buying products or services from within it!
Is Identity Verification a New Trend?
Identity verification is not a new concept, but it is more important than ever to verify every customer before onboarding them. The practice of identity verification has been around since the early 1900s when people had to show ID cards and social security numbers before performing certain tasks.
In this day and age, identity verification has become an essential part of any business strategy. It is especially when it comes to fighting fraud and cybercrime. There are many methods used for verifying identities these days such as biometrics identification, data analytics, etc. Most companies still rely on traditional methods like name/address verification, phone number validation, SSN verification, etc.
Companies should not be lax when it comes to their efforts in verifying all customers’ identities before allowing them access to their systems. All those efforts go down the drain if there is no proper process in place for identifying suspicious activities within your company’s systems or networks.
Common Requirements for Identity Verification
One of the most common questions I get asked is, “what are some common requirements for identity verification?” To answer this question, we need to first understand how businesses use identity verification. In general, there are two main purposes for onboarding new customers:
Compliance with regulations: Many banks and financial institutions have credit card fraud protection requirements. It requires them to perform an identity check on new customers before they can be issued a card or account. If you don’t verify your customer’s identity in compliance with these regulations, then you could potentially get fined by FinCEN (Financial Crimes Enforcement Network).
Customer satisfaction: In addition to complying with government regulations, many merchants want their clients to feel safe when buying from them online. One way they do this is by verifying customer identities so that they know who they’re buying from before fulfilling orders or charging their accounts.
How Do Identity Verification Solutions Work?
Identity verification solutions are designed to determine whether an individual is who they say they are. They use a combination of data sources to validate an individual’s identity, including social media, government, and financial institutions.
Benefits of Using an Identity Verification Solution
There are several benefits to using an identity verification solution.
Prevent fraud: With a solution that verifies every customer’s identity before onboarding, you can significantly reduce your risk of accepting fraudulent or stolen payments. This is especially important in industries like retail and hospitality where the consequences of fraud are more severe than in other industries.
Reduce costs: It’s estimated that one-third of all online payment transactions are fraudulent or involve some kind of chargeback (when a customer disputes a transaction). Fraudulent transactions cost businesses millions in revenue each year, which can get easily reduced by verifying every customer with an authentication solution. This is before they begin making purchases on your site.
Improve revenue: Verifying customers’ identities will also help you increase revenue. It will improve conversion rates and decrease shopping cart abandonment rates by removing barriers to purchase. These can be worries about security and privacy concerns caused by entering sensitive information into forms on your website.
How to Choose an Identity Verification Solution?
There are many solutions out there that can help you do due diligence and verify your customers’ identities. However, not all of them will fit your business needs. Here are some things to consider when choosing an identity verification solution:
Ease of use: A good solution should be easy for you to integrate with your existing systems, so it doesn’t require any extra time or resources on your part.
Scalability: The ideal solution can grow as your company grows. This way it won’t become a bottleneck in the future when you begin accepting more orders or onboarding more customers at once!
Cost-effectiveness: The best solutions cost nothing upfront and only charge based on how much data is collected for each verification request (usually about $0.05-$0.25 per request). They also offer reimbursements if there are any issues with payment processing after onboarding someone new into the platform via their service provider’s API endpoint URL.
This protects small businesses from large credit card fees due to fraud detection activity occurring within minutes after an initial purchase has been made (which could happen even if they weren’t trying anything funny).
Security measures are already built-in by default before integration begins. This could include encryption protocols like SSL/TLS certificates installed automatically during setup time too. So companies don’t have to worry about adding these later down the line while working under tight deadlines again.
Users will always be looking for businesses that offer the highest level of security and protection. By improving your identity verification process, you can ensure that all user accounts are created and accessed by legitimate individuals. That way, you can protect users from fraudsters and yourself from financial losses associated with account takeover attacks or money laundering.