If you want to compete in business today, you must accept
credit cards and start processing credit card payments.
On the other hand in this fast moving world, customers purchase everything online from a kitchen sink to office equipment, from batteries to custom clothing and anything and everything else delivered right to their doorstep. The customer places the order at the concerned website and after paying the amount using his credit card receives the purchased material delivered directly from the retailer, manufacturer, or many times by drop shipper. The customer would like to ensure that the data and information submitted at your website is secure and remains in confidential. So the new merchant account fraud protection method is not only beneficial for you as a merchant but it is also beneficial for your customers.
Most modern e-commerce websites accept online credit card payments and the transactions are increasingly verified by Cardholder Verification Value or CVV2. Whenever a customer places an order at your website using his or her credit card, the three number CVV2 helps to ensure that the physical card is in the cardholder’s possession while shopping online or by phone, helping to prevent unauthorized or fraudulent use.
Another fraud protection method for customers and merchants is setting a Personal Identification Number (PIN) which protects your existing credit card with a password you create, thus giving you assurance that only you can use your Visa card online. The Personal Identification Number (PIN) is similar to a password or PIN of an ATM card. Once your online business shopping cart software is integrated, a PIN number is asked from the customer during the transaction and the PIN number supplied by the customer is immediately forwarded for authorization. The credit card issuer verifies the PIN and confirms that the cardholder is the real owner of the card and the transaction is completed.
The advantages of this form of merchant account fraud protection are its simplicity, ease of use, low implementation cost, reduces the fraudulent credit card transaction and it also helps in reducing charge back volumes. For implementation of this merchant account fraud protection method, no additional hardware or software is required. It carries out the verification in real-time and if the card issuer does not verify the identity, the transaction is terminated. This helps in reducing the cost of business and reduces the overall cost of fraud.
This merchant account fraud protection system is unique as it verifies the password or PIN supplied by the credit card issuing agency in real-time. The new merchant account fraud protection methods saves millions of dollars for consumers and merchants alike, and is also very convenient and easy protection for all involved transaction entities.
The CC Processing
Fraud
Detection Suite (FDS) is a
set of customizable,
rules-based filters and
tools that identify, manage
and prevent suspicious and
potentially costly
fraudulent transactions. You
can customize FDS filters
and tools to match your
business needs and control
how suspicious transactions
are handled, including the
ability to approve, decline
or hold transactions for
manual review.
Credit card fraud exposes
Web merchants to potentially
significant and ongoing
costs. Here's how Fraud
Detection Suite can help:
Reduce Costs - Minimize and
prevent authorization and
chargeback fees as well as
possible inventory loss
resulting from fraudulent
transactions.
Protect Profits - Maximize legitimate transactions, rather than refusing business due to a fear of potential fraud.
Maximize Flexibility -
Customize filter settings
according to your unique
business needs.
Improve Intelligence -
Restrict transaction
activity from specific
Internet Protocol (IP)
addresses using powerful IP
tools.
Easy to use - A setup
wizard guides you through
the configuration process.
FDS includes multiple
filters and tools that work
together to evaluate
transactions for indicators
of fraud. Their combined
logic provides a powerful
and highly effective defense
against fraudulent
transactions.
Amount Filter - Set lower
and upper transaction amount
thresholds to restrict
high-risk transactions often
used to test the validity of
credit card numbers.
Velocity Filter - Limit the total number of transactions received per hour, preventing high-volume attacks common with fraudulent transactions.
Shipping-Billing Mismatch
Filter - Identify high-risk
transactions with different
shipping and billing
addresses, potentially
indicating purchases made
using a stolen credit card.
Transaction IP Velocity
Filter - Isolate suspicious
activity from a single
source by identifying
excessive transactions
received from the same IP
address.
Suspicious Transaction Filter - Reviews highly suspicious transactions using proprietary criteria identified by CC Processing ’s dedicated Fraud Management Team.
Authorized AIM IP Addresses - Allows merchant submitting Advanced Integration Method (AIM) transactions to designate specific server IP addresses that are authorized to submit transactions.
IP Address Blocking - Block transactions from IP addresses known to be used for fraudulent activity.
Summary:
The latest merchant account fraud protection techniques are useful for all online business storeowners. It helps in real-time verification of cardholders by the issuing authorities and thus reduces total cost of fraud and ultimately the overall cost of doing business.