Fraud Prevention Tips
Fraud Prevention Tips
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Why does CVV2 assist in fraud prevention?
What is the process for address verification?
How can Linkshield help my online business?
How prevalent is fraud in credit card usage?
Explain the Verified by Visa program?
What can I do to help me protect my online business from fraud?
Why does CVV2 assist in fraud prevention?
Another valuable and seamless credit card fraud prevention measure is the CVV2 numbering system. This system (under different names) is offered by almost all credit card associations and issuers. Some of us may not recognize the name – CVV2 – but will recognize the feature as the additional three digit number printed in the signature area on the back of your credit or debit card. This number is an added level of Internet fraud prevention for merchants accepting the card and is intended to ensure that the card is actually in the purchaser’s possession when making online or phone purchases. The system is one of many techniques offered to combat fraud and credit card misuse. The number is transmitted along with the card and transaction information and can be quickly verified as valid by the processor. For more information on this and other security issues, contact your First Data Independent Sales representative. Back to the Top
What is the process for address verification?
Address verification is both an automated and procedural fraud prevention technique that all online merchants can use to reduce credit card fraud and theft. The automated capability is built into certain merchant accounts through the underwriting credit card issuer and is apparent when dealing with mid- and non-qualified transactions. The procedural side is an act of prudence that can be implemented by every online merchant and involves manually verifying that the addresses used by the customer are the same as the addressess in the merchant account providers records.
An example is the eBay auction process. When checking out and preparing to pay for the auction, shipping and billing addresses are made available to the seller. Matching this information can lead to a better level of fraud prevention and can save the seller significant money, time, and effort. The automated systems work in the same manner and perform the check online and in the background and are extremely accurate.
One word of caution; like any procedural verification process, it is directed to the bulk of user situations. Some buyers may have valid reasons why their addresses do not match, such as P.O. Boxes because of unavailability of street or rural delivery. In order to not lose a sale, common sense must apply, and use of other fraud prevention procedures must be applied. Speak to your First Data Independent Sales representative to learn all of the techniques available to protect you and your customers from fraud. Back to the Top
How can Linkshield help my online business?
Fraud security is one of the hottest topics when it comes to accepting credit cards online. There are many technologies and solutions in use that continue to contribute to Internet fraud protection in this constantly changing ecommerce landscape. One of the unique features of the Linkshield technology is that it offers two levels of protection for online merchants and other related businesses. The first provides security to your link, making it virtually “impossible for a customer to remove or modify your tracking code…” The second level is “Cloaked Link and Page Source Encoding” that conceals this information from the customer. The product is completely Web-based and does not require software or specialized equipment. The professionals at First Data Independent Sales offer this service to its merchants; contact them today to learn more about Linkshield. Back to the Top
How prevalent is fraud in credit card usage?
Fraud prevention is a key attribute and detriment to the world of ecommerce. Fraud accounts for much of the unnecessary expenses experienced by those that use, manage, provide services for, or accept credit cards online as part of their business activities. This pervasive problem is worldwide and has resulted in billions of dollars being spent on tactics to control and lessen the associated costs. What it boils down to is that every part of the credit card chain -- from associations, issuers, and users -- has to embrace sound business practices that include technology, training, vigilance, and cooperation. Talk to your Cardservice representative soon to learn how you can join in contributing to a solution to this impediment to growth and prosperity. Back to the Top
Explain the Verified by Visa program?
Visa has long been an innovator and leader in the use of credit cards for static and electronic payment applications. Visa is also as prominent in the credit card security and protection arena. Verified by Visa is an innovative program that is part of a layered security strategy that is geared to:
"Improving the security of online payment transactions
Increasing both cardholder and merchant confidence in Internet purchases
Reducing disputes and fraudulent activity related to Visa payment cards”
The program is widely deployed and most credit card issuers participate. It’s easy to sign up and quick to use given the protection it provides to both the cardholder and participating merchant. Sign up can be done the first time you see the Verified by Visa entry screen or by going to usa.visa.com to activate your card. It involves confirmation of identity and selection of a simple password and you’re on your way!
First Data Independent Sales fully supports this program and encourages merchants to get onboard and reap the savings the program affords. Call your service representative today for more information. Back to the Top
What can I do to help me protect my online business from fraud?
It is very important that you, your partners, and employees are well trained in recognizing the signs of credit card fraud and the tolls available to combat it. Much of online fraud prevention deals with common sense approaches to see fraudulent activity before the sale is made. Adhere to every processing procedure required by your merchant account provider and his network. Sometimes the rush of business drives people to circumvent safe practices in the name of profit or expediency. This can cost you in added fees and loads of additional time responding to chargebacks, retrieval requests, and investigations. Never ignore a PIN verification request or a request for more information upon transaction processing. These requests are triggered by sophisticated software systems that have been "trained" by the programmers to recognize the latest fraud techniques. In every case, utilize the expertise of your merchant services provider – First Data Independent Sales – for they are well versed in fraud prevention and are more than willing to share that expertise with you, their valued clients.Back to the Top
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