What is the best practice for collecting customer information during checkout based on fraud prevention strategies?

Collecting as much information as possible without creating excessive friction during the checkout process is a best practice rooted in balancing security and user experience. By gathering more customer information, businesses can enhance their ability to identify and prevent fraudulent transactions. When the checkout process provides relevant data points—such as billing addresses, phone numbers, and transaction histories—it allows for more robust verification that can flag potential fraud attempts.

This approach considers the need for both comprehensive data collection and customer convenience. While it's important to gather enough information to assess the risk of fraud effectively, it’s equally essential that the checkout experience remains smooth and user-friendly. Too much friction can lead to cart abandonment, which negatively impacts sales.

Using prefilled forms can certainly aid convenience, but it may not provide as comprehensive a data set as collecting additional relevant information from customers. Concentrating solely on payment information or limiting data to just a name and email could leave the business vulnerable to fraudulent activities, as these minimal inputs do not offer sufficient insights for risk assessment. Hence, the strategy of balancing thorough information collection without overwhelming the customer aligns best with effective fraud prevention.