This document discusses five pillars of modern e-commerce: flexibility, scalability, omnichannel, integrations, and customizations. It also covers popular payment methods, types of fraud to watch out for including transaction fraud and friendly fraud, and tips for implementing payment methods like prioritizing customer experience, understanding the parties involved, processing speed, safety, and choosing reliable providers.

1. Victor Charles Migireh
Compliance and Finance Crime
https://www.linkedin.com/in/charlesmigireh
/
Speaker’s Photo

2. Key Concepts
● DIGITAL COMMERCE PILLARS
● PAYMENT METHOD & FRAUD PREVENTION
● Tips to keep in mind when implementing and diversifying
the payment methods of your online store

3. 5 pillars of e-commerce for the
modern world
1. Flexibility - Today, a cornerstone of modern e-commerce is that it’s headless in
nature. This means that the front and backend have been separated or decoupled.
Headless e-commerce platforms allow development teams to make changes to the
user experience without the risk of disrupting the back-end code. Beyond that,
headless e-commerce makes it easy to roll out new features or expand capabilities
as the business needs change.

4. 1. Scalability - All B2B enterprises are striving towards growth. When it comes to
B2B e-commerce, growth typically means more orders, more traffic, and more
bandwidth. This brings us to a common pitfall enterprises that have legacy software
experience. As the business grows, the e-commerce software cannot handle the
increase in traffic. However, this problem is easily solved with cloud-native
technology that easily scales upward with your business.
5 pillars of e-commerce for the
modern world

5. 5 pillars of e-commerce for the
modern world
1. F
2. S
3. Omnichannel - In recent years, the concept of omnichannel has not only grown
in popularity but become a viable and essential business strategy. There has never
been more ways to interact with an application; the web, mobile, connected devices,
and more. An omnichannel approach allows a business to deliver applications that
not only operate in any channel but can scale as more channels are added without
having to create new solutions for each of those channels. Modern commerce
architectures make it possible to execute a strong omnichannel strategy.

6. 5 pillars of e-commerce for the
modern world
1. F
2. S
3. O
4. Integrations - API-first e-commerce platforms, like Sitecore® OrderCloud®,
make integrations fast and easy. The need for the ability to integrate is two-fold for
many B2B enterprises. First, enterprises have other business-critical systems that are
essential to running their business, and choosing a modern e-commerce platform
that fits their business and can integrate with those systems is crucial for future
success. On the other hand, as a business grows and evolves, enterprises often find
themselves needing to iterate their e-commerce experiences. Adding a chatbot, for
example, is as easy as creating a new integration with modern e-commerce.

7. 5 pillars of e-commerce for the
modern world
1. F
2. S
3. O
4. I
5. Customizations - While enterprises have always looked to commerce suite
vendors to support basic capabilities like running online catalogs, shopping carts, and
promotions, they now expect highly customized seamless purchase journeys,
innovative fulfillment options, assisted sales alternatives, integrated microservices,
PIM systems, unique corporate account ordering experiences, and much more.
These new demands are driving the need for enterprises to move towards modern e-
commerce technologies like headless e-commerce platforms which can support fast,
cost-effective, custom B2B e-commerce applications that go beyond the shopping
cart.

8. If you find yourself handcuffed by a legacy e-commerce system
that is keeping you from evolving as an organization, it’s time for a
change. When thinking about the future of your business, there’s a
lot to be excited about, but also plenty of hurdles to prepare for.
But with the right technology, you’ll be ready to experience long
term success.

9. Payment Methods
● Debit/ Credit Card Payment
● Stored Value Cards
● Electronic Funds Transfer
● Mobile Money
● Digital Wallets
● Paypal
● Apple Pay

10. Fraud Detection and Prevention
● Ecommerce is fast-paced, competitive, and at times very challenging. The last thing
most ecommerce business and service providers want to worry about is how to
deploy a RiskOps or prevention system.
● And yet, we have seen time and time again, every ecommerce owner soon realizes
that they must protect themselves against fraudsters. In Fact Covid-19 pandemic did
actually greatly accelerated the need, fraud rates rocketed by 70% during the health
crisis.
● While eCommerce allows retailers to access a global audience, it also opens the
door to bad agents who can impersonate customers to attack online stores.

11. Types of Fraud:
Transaction Fraud: This happens when bad agents make purchase with stolen cards,
CNP(card not present)fraud, leading to chargebacks and at times, card network may put
you in high fraud target category where the processing fees are high.
Friendly (first Party) Frauds: They fall into 3 broad categories;
● Innocent or accidental requests made by customers who do not recognize a
purchase;
● Opportunistic Fraud requests weaponized by opportunistic and dissatisfied
customers
● Malicious Friendly fraud where customers know in advance they are going to
request a chargeback, malice.
They have an added challenge of having to prove cardholders bad intention when
disputing the chargeback.

12. Return Fraud:
● Receipt Fraud: Using reused, stolen or falsified online receipts to return merchandize
for profit OR returning goods purchased on sale or from a different store at a lower
price, with intention of profiting from the difference.
● Bricking: Purchasing a working electronic item and deliberately damaging or stripping
it of valuable components, thus rendering it unusable, then returning the item for
profit
● Switch Fraud: purchasing a working item and returning a damaged or defective
identical item.
● Inventory Depletion: Purchasing an entire shops inventory so that consumers are
more likely to buy the same item from fraudster’s own store
● Open-box Fraud: Purchasing an item from a store and returning it opened with the
intent to re purchase it at a lower price under the store’s open-box policies, the items
are later returned for a refund, within the rights policy.
Types of Fraud:

13. Types of Fraud Cont:
Wardobing: It is a form of both return and friendly, its worth highlighting this form of exploit, users
purchase an item of clothing with the intention of wearing it for the short period or event and returning
it.this has been a thorn for brick and mortar shops and now more frequent with online purchases, the
buyer does not have to lie to the shopkeeper in person.
Report by retail technology review claims that wardobing costs retailers $1.89Bn/year.
Triangulation Frauds: This involves a legitimate customer, a legitimate online store and a fake online
store operated by a fraudster who has access to stolen card details.
Account Takeover Fraud:
● If your online store lets lets customers hold store credit in their hold store credit in their accounts,
they effectively become an e-wallet. This is a strong incentive for criminals to steal the information
and take over the account.
Bonus Abuse Fraud:
As the online store landscape becomes increasingly competitive, retailers become innovative too to
attract customers with coupons and bonus offers, a very strong incentive for fraudsters; they will create
multiple accounts and refer themselves hence damaging the bottom line, hurting the marketing efforts
and loss of profit on items that would otherwise been have sold at full price to legitimate customers

14. Tips to keep in mind when implementing and diversifying the payment methods online
transactions:
● Customer Experience: Not all ecommerce payment gateways and processors make a commitment to exemplary customer
support. Good support really matters for your customers, and depending on the demographics of the audience, you’ll want to
provide options that will suit their needs.
● Understand the parties involved in the transaction -
○ Marchants - A merchant is the online business that accepts a payment from an online shopper. Merchants send
transaction information to payment gateways for authorization and then to the processors for settlement.
○ Payment Gateway - A payment gateway is essentially a transaction service that enables your store to process credit
and debit card payments, safely capturing payment details and sending you an approved or a declined message. If the
payment is declined, you can cancel the transaction or ask the customer to provide a different type of payment.
○ Payment Processor - While a payment gateway approves or declines payment, the payment processor is the one that
processes the payment after an online purchase with recurring billing.
It works as the link between the customer, the online seller, the acquiring bank, the issuing bank, and the payment
gateway to exchange funds. While some processors don’t handle the whole payment process, many do.
● Processing Speed: Both speed and ease of use relate to the user experience—and that’s a crucial factor for the success of your
multi vendor eCommerce platform.
The speed at which your payment gateways and processors handle payments is critical. You need to choose a processor that
offers near-instant transactions—the whole process shouldn’t take longer than a few seconds. If possible, go with cloud
transfer which enables quicker processing times.
● Safety and Security: It’s fundamental that the payment gateway and processor you choose fulfill all the PCI compliance
requirements.
● Reliability and Reputation: