1.6% of online store revenue is credit card fraud

E-commerce fraud losses reached $2.8 bln in 2005, an 8% YTY increase, with mid-size to large merchants experiencing the largest hikes in fraud rates, according to CyberSource. While the overall fraud loss rate remains relatively constant at 1.6% of revenue, fraud rates for mid-size merchants with annual sales between $5 mln and $25 mln increased to 1.8% of revenue from 1.5% in 2004. Fraud rates for large merchants with annual sales over $25 mln increased to 1.2% of revenues from 1.1%.