Merchants that fully support card security verification can expect fewer fraudulent transactions reduced card-holder disputes, and improved customer satisfaction. Marathon routes the card verification request from the merchant directly to the specific credit card association. The card security value is then compared to the card issuer's value on file. Credit card verification programs are offered by the major card associations and are known as CVV2 (Visa), CVC2 (MasterCard), CID (American Express) and CID (Discover Card).
Showing posts with label Credit Card Fraud. Show all posts
Showing posts with label Credit Card Fraud. Show all posts
Thursday, August 19, 2010
Another fraud prevention measure for Card Not Present merchants
Card security verification collects the non-embossed 3- or 4-digit numeric code on the credit card provided at the time of purchase. Statistics prove that individuals who possess the account number, but not the actual credit card, perpetrate much of the non-face-to-face fraud.
Thursday, July 15, 2010
Why use an AVS (Address Verification Service)
Using AVS (address verification service) is a good fraud prevention measure for Card Not Present merchants. Address Verification Service.
Address Verification Service (AVS) is a risk management tool for merchant accounts accepting transactions when neither the card nor the cardholder are present, or when the card is present but its magnetic stripe cannot be read by a terminal at the point of sale. Provided by the major card associations, AVS helps reduce the risk of fraudulent transactions by verifying the cardholder's billing address on file at the card issuer. Merchants submit the AVS request to the specific credit card association for address comparison.
Address Verification Service (AVS) is a risk management tool for merchant accounts accepting transactions when neither the card nor the cardholder are present, or when the card is present but its magnetic stripe cannot be read by a terminal at the point of sale. Provided by the major card associations, AVS helps reduce the risk of fraudulent transactions by verifying the cardholder's billing address on file at the card issuer. Merchants submit the AVS request to the specific credit card association for address comparison.
Wednesday, June 23, 2010
Credit Card Fraud: How to Protect Your Business
More people than ever are shopping online, using their credit cards to buy everything from business and consumer products and services.
That's great news for small and big ecommerce sites alike. More people using their credit cards to buy more gifts, should mean more profits for most online businesses if they aren't victims of credit card fraud.
Credit card fraud, unfortunately, can quickly turn a prosperous holiday season into a nightmare for a small business. The owner of a small mail order business located in California had to borrow from friends and family to make good on $14,000 worth of fraudulent charges made on stolen cards one year. The following year, the owner implemented procedures to screen out possible fraudulent orders and refused to ship $25,000 in orders that seemed suspicious.
Spotting fraudulent orders
Fortunately, if you sell online or over the telephone there are a number of steps you can take to minimize the occurrence of fraud.
First and foremost, be on the look out for suspicious sales. These include:
*Unusually large orders placed through the Internet without any contact from the customer.
*Rush orders for large quantities or high-priced goods. Crooks may ask to have an order shipped overnight so they know exactly what day the order will arrive and they can be waiting to pick it up.
*Missing information, or information the customer refuses to give such as a day-time phone number.
*Orders that are shipped to a different address than the billing address.
*Orders from foreign countries
*Orders on US cards shipped to foreign countries
*Billing addresses that don't match the information on file with the credit card company.
By themselves, no one of these things are a sure sign that a credit card is stolen, but when several factors are present (say, your average ticket amount is $75 and you see an rush order for $5,000 being shipped to a different address than the address of the credit card holder) it's prudent to be suspicious and investigate the sale.
Even if there's only one factor that doesn't pass your "sniff" test, it's useful to err on the cautious side.
That's great news for small and big ecommerce sites alike. More people using their credit cards to buy more gifts, should mean more profits for most online businesses if they aren't victims of credit card fraud.
Credit card fraud, unfortunately, can quickly turn a prosperous holiday season into a nightmare for a small business. The owner of a small mail order business located in California had to borrow from friends and family to make good on $14,000 worth of fraudulent charges made on stolen cards one year. The following year, the owner implemented procedures to screen out possible fraudulent orders and refused to ship $25,000 in orders that seemed suspicious.
Spotting fraudulent orders
Fortunately, if you sell online or over the telephone there are a number of steps you can take to minimize the occurrence of fraud.
First and foremost, be on the look out for suspicious sales. These include:
*Unusually large orders placed through the Internet without any contact from the customer.
*Rush orders for large quantities or high-priced goods. Crooks may ask to have an order shipped overnight so they know exactly what day the order will arrive and they can be waiting to pick it up.
*Missing information, or information the customer refuses to give such as a day-time phone number.
*Orders that are shipped to a different address than the billing address.
*Orders from foreign countries
*Orders on US cards shipped to foreign countries
*Billing addresses that don't match the information on file with the credit card company.
By themselves, no one of these things are a sure sign that a credit card is stolen, but when several factors are present (say, your average ticket amount is $75 and you see an rush order for $5,000 being shipped to a different address than the address of the credit card holder) it's prudent to be suspicious and investigate the sale.
Even if there's only one factor that doesn't pass your "sniff" test, it's useful to err on the cautious side.
by Janet Attard, Founder of the award-winning "Business Know How" small businessweb site and information resource.
Subscribe to:
Posts (Atom)