Saturday, March 03, 2007

How To Prevent Fraudulent Credit Card Transactions

What Are Possible Signs of Fraudulent Transactions see at Web Hosting Companies?

Customer desires to pre-pay for a year

Domain Name Registration for 5 old age or more

Orders using free electronic mail computer computer address suppliers like Hotmail, Yahoo, etc.

Usage of multiple cards to finish order.

International address. Abs can not validate those international addresses.

Multiple purchases in a short clip period.

The client and charge computer computer addresses are different.

AMEX, VISA, and MasterCard implemented a security characteristic known as “CVV2” and “CVC2”. These are the three-digit or four-digit numbers printed on the dorsum side or presence side (depending on card company) of the card (signature panel) to the far right. The three/four-digit codification assists to validate that the cardholder have the card in his possession. You can include the codification in your transaction processing and need to have a lucifer to successfully complete the transaction. If you are using a shopping cart for your hosting sign-up process, do certain that it is capable of collecting and processing these numbers. IMPORTANT: The ToS of the credit companies state that you are not allowed to hive away these numbers.

Use Address Confirmation Service (AVS) on all United States transactions to verify the charge information provided in the order with what is on data file with the card issuing bank. As a bare minimum, the nothing codification should successfully fit before the transaction is approved and you manus out the account information. You should reserve the response information for some clip in lawsuit of a chargeback.

The possible Abs messages are:

Y – Exact lucifer on street computer computer address and 5 or 9 figure nothing code.

A – Address matches, nothing codification makes not

Z – nothing codification matches, address makes not

N – No match.

U – Address information is unavailable or Issuer makes not back up AVS. These transactions are only applicable for Visa and the merchant isn't responsible for chargeback liability.

R – Issuer mandate system is unavailable, rehear later

E – Mistake in computer address information – not able to finish check.

G – non-US Issuer not participating in Abs - Visa only. The mistake messages will change from one supplier to the next. Contact your supplier for more than information.

S – Address information is unavailable or Issuer makes not back up Abs - MasterCard only.

The most of import warning mark of fraudulent transaction are international orders. It is very sad to be so generic with this statement but the percentage of having a fraudulent orders travels up immediately if the order come ups from a non-US location. Be aware of cities or states with high rates of fraudulent transactions. Malaysia, Indonesia, and most states of the former Soviet Union be given to be beginning of many fraudulent orders.

The most effectual manner to assist eliminate fraud or chargeback's is to simply name the customer. A confirmation over the phone is most definitely advised for any large transactions. If you process a fraudulent transaction, not only make you lose the funds, but the product/service arsenic well. A phone - even if it is international volition save you a batch of fuss in the long run.

What if you happen a transaction to be suspicious? Contact your mandate centre and allow them cognize you are concerned about the transaction. They will look at the transaction and may give you advice. You should also name the client to bespeak further information (copy of drivers licence or Pass as an example). Check the information science computer address of the sign-up and see where it is globally. Bashes it fits the clients computer address at least by country? Send a confirmation electronic mail to the client verifying their order.

It may be a good policy to only accept orders with indistinguishable Customer and charge addresses.

Maybe you desire to size up international orders as your protection against these consumers is very minimum and not accepting them could be a wise pick for your web hosting business.

Placing fraudulent notices, buttons and images on your web land site and order word forms will assist discourage any individual trying to put a fraudulent order. Brand certain that the client will selenium upfront that you are recoding the information science computer address and that you will advise the law enforcement agencies if needed. It might not protect you in every lawsuit but eventually it will assist to cut down the number of fraudulent orders.

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1 comment:

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