Combating online Credit Card Fraud
Payment fraud detection and prevention is a key to success for any online enterprise, in the face of challenges imposed by organized fraud syndicates, the merchant has to guard against fraud and seek protection to prevent it.
Alarming increase in online transaction fraud
The internet has seen a tremendous growth on all fronts and especially e-commerce has opened windows of opportunity for small, medium, and large businesses. In spite of the tremendous growth seen over the past few years, there is a negative element to it in the form of online fraud. According to a survey, approximately $4 billon was lost to fraud by U.S merchants in 2008.
There is an immediate need for screening solutions that can detect and prevent online fraud, MerchantRMS through its daunting effort, is offering merchants secure solutions that include advanced filters and tools to combat online payment fraud.
Fraud endangers the growth potential of merchants
The organized fraud syndicate network can target any online business how so ever small or big, with available technology they use more sophisticated means to manipulate internet protocols skillfully, besides are able to exploit weaknesses in the programming languages and infrastructures of many e-commerce websites, as a result many online merchants fall victims to fraud and scams. The weak security of online transactions bothers many merchants.
Fraud screening requires more than standard tools
The Address Verification System (AVS) and Card Code Verification (CCV) the two standard screening tools in use for validating a credit card, important as they seem, are not sufficient enough to provide the level of security required for Card-not-Present transactions. The fraud syndicates are undeterred by these standard screening processes because they are able to bypass these with impunity. The online enterprises need more advanced screening tools for fraud detection.
Frauds that most commonly occur
The online merchant confronts two kinds of fraud –
Verification Fraud - allows a fraudster access to legitimate card numbers and for cross checking the validity of the card, the fraudster order merchandise and uses the merchant’s payment form, the intent at that point of time is not for monetary gain but only for information. The process however proves to be costly for the merchant, since many invalid transactions take place simultaneously.
Settlement Fraud - As soon as the fraudster establishes the validity of a credit card, the merchant receives an order for merchandise, and the attempt of the fraudster is to order large quantity of the product and request for shipping to a location that is different from the one that is available on the credit card. The effort is to “make hay while the sun shines”, order and steal as quickly as possible, before the merchant receives charge backs.
MerchantRMS provides safe and secure solutions
The merchants that are victims of fraud need not despair, MerchantRMS has the expertise to provide fraud prevention services to online merchants, a team of experts that review online payment frauds design solutions for credit card fraud protection.
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