Key Considerations for Expanding E-Commerce Into Brazil: Payments, Fraud and Taxation
Other online payment methods such as e-wallet solutions and direct debit don't currently have much traction in Brazilian e-commerce.
Online Fraud
While fraud is obviously a key consideration when expanding into new markets, e-commerce in Brazil is fairly well protected against fraud. Brazilian consumers are usually required to state their 11-digit tax ID (CPF) and telephone number at checkout online. The CPF can be validated via an algorithm and queried against public databases. In addition, most credit cards can only be used domestically and are therefore not a prime target for criminals. Thus, online fraud is mostly limited to so-called "friendly fraud," where consumers might initiate chargebacks claiming a failed delivery of services or goods.
- Places:
- Brazil
- Latin America
- US
