What is Online Credit Card Fraud?
Keeping cash in your pocket, you take the risk that it might be stolen and spent without your knowledge. It’s the same with online payment. There is a possibility that your credit card data may fall into the wrong hands. It can happen to anyone just like pickpocketing or other forms of fraud. However, taking the right preventive measures, both buyers and merchants can avoid such problems.
Online sales is considered to be card not present (the cardholder is not physically present) transaction. It means that signature-based fraud prevention techniques are all of no use, as merchants never get a chance to see payment cards any more.
Before entering any sensitive information, always make sure that the URL is safe, the merchant is reliable, and always check the presence of SSL certificate.
In order to protect ourselves from identity theft and scams, we obviously need to be mindful when providing personal information. However there’s no reason to hesitate to share reasonably required data (like address, phone number and so on) securely and for our own good. The more cautiously card holders are identified the stronger protection keeps their data safe.
Now, should you consider any charge (showed up on your checkbook register or your bank account statement) to be unauthorized, do not hesitate to contact your bank.
What is Chargeback and how to prevent it as an Online Merchant?
Simply speaking, chargeback is the return of a transaction to the consumer. It is initiated by the card issuer bank upon a complaint by the account holder. Chargeback is an unfriendly way of returning funds. Normally it happens by some confusion about the charges or fraud activity that finally leads to painful extra fees at merchant’s side.
Each business operating in online payment industry aims to get a huge traffic, keeping chargeback ratio as low as possible.
Chargebacks can result from a number of reasons. The good news is, most of them can be prevented. The two most important components of prevention are professional Client Service and Fraud Detection. Now let’s see how an Internet Payment Service Provider can protect your business.
Antifraud – fraud prevention
Running an online business, are you really aware of the newest tricks in credit card fraud? Do you know where the weak links are in your system, which can easily be misused by a slick online fraudster within seconds?
Well, probably not, because it’s not the merchant’s responsibility. Such issues necessitate experts like the Internet Payment Service Providers, so you can focus solely on your business
A well-designed fraud prevention system is made up of the following main elements:
1. Reliable, efficient, scalable and sophisticated automation systems
2. A team with several years of experience in fraud prevention
Without these key elements, the web business loses a considerable amount of incomes. One of the most common mistakes merchants make is to refuse lots of non-fraud transactions by using predefined filters alone.
The secret is, implementing the right automatic tools and keep it under the control of watchful experts twenty-four hours a day, seven days a week. Building a successful online business, this is what a payment service provider can really chip in with. Maximum profit while cutting losses and risk.