From a fraud prevention standpoint, which best practice should be applied to a user's checkout flow?

To effectively prevent fraud during the checkout process, best practices emphasize collecting relevant customer information without overwhelming the user. Gathering necessary details helps build a profile of the customer, which can be critical in identifying potentially fraudulent transactions. This information can include billing addresses, email addresses, and phone numbers. By having a robust set of customer data, merchants can utilize analytics and machine learning to detect patterns indicative of fraud.

While requiring instant verification of identity could enhance security, it may also create friction that deters legitimate customers. Limiting payment methods to credit cards might restrict customer choice and negatively impact conversion rates, as many users prefer alternative payment options. Implementing a waiting period for payments can slow down transactions, frustrating users and potentially resulting in abandoned carts. Thus, the best practice of collecting customer information effectively balances security with user experience, allowing for better fraud detection while still accommodating genuine customers.