6 Reasons Counterfeit Goods Put Payment Companies at Risk

Thursday, February 27th, 2020

Counterfeit goods aren’t something new: they’ve been around for many years. The rise of the digital world has facilitated for counterfeiters to sell more goods to a larger number of consumers. This article will show you how the problem of fake products is about more than just monetary losses. Also, it’ll help you with reliable payment companies.

Fake Products Risks & Secure Payment Companies

Counterfeit and pirated goods account for min. 3.3% of global trade, according to the E.U. Intellectual Property Office. Moreover, the online IP and brand protection software provider Incopro reports that the global economic losses caused by counterfeit goods make up $323bn.

Also, based on the data provided by Incopro, 44% of the consumers polled report that unknowingly purchasing fake products will make them lose trust in brands. 26% of those polled state that even if they were fooled and reported the seller, they didn’t get a refund.

Here’re several major risks associated with counterfeit products:

• Payment service providers can face higher reputational risks because of consumer injury.
• A number of websites advertising and selling counterfeit goods aren’t safe to use: they compromise personal data and send malware to computers or mobile devices.
• Legit brands and businesses experience major losses because of counterfeit sales.
• Counterfeit product sales are often associated with human trafficking, money laundering, or labor exploitation, drug trafficking, and terrorism support.
• Purchasing fake goods harms not only you but also others.
• Producing and selling fake products to gain profit by using a trademark without the owner’s permission are illegal acts that are subject to heavy penalties.

All this once again highlights the importance of working with a safe and trustworthy payment specialist that can help you grow your business successfully. Finding a reliable payment processing company can’t be an issue if you turn to a respectable comparison expert like Best Payment Providers U.S. that’s focused on terms, complaints, and integration.

With a reputable merchant services comparison specialist like BestPaymentProviders.com, you can get the most honest reviews on payment companies so to make the right choice.

Official data reveals that up to 10% of all goods sold in the U.S. may be counterfeit. Each year, fake product loss makes up nearly $1.4 billion.

As you see, counterfeit products go on becoming more widespread. 3^rd party eCommerce sites are making it easier for counterfeiters to sell inauthentic products.