Credit Card Processing

Years ago when ecommerce started, there were no tools to protect internet merchants from fraud. The tools in the industry were designed only for brick and mortar retail stores and restaurants. This type of fraud prevention mainly included checking IDs, obtaining signed receipts and verifying the legitimacy of the credit card. Merchants doing business online were not able to utilize any of these tools. These companies were left to try and develop their own types of fraud detection and prevention all by themselves. The merchants were far behind the crooks.

Today, the story is different. Merchants today have advanced tools that allow for businesses to verify all types of information about the cardholder and the transaction. Some of the tools include AVS or address verification system, CV2 code system and iSpy Fraud. Both of these tools can help a merchant prevent fraud while also receiving the lowest processing rates available.

Banks know that if fraud tools do not come back with a positive response there is a much higher chance of fraud. On certain transactions the bank will still let the transaction go through and on others they will not. On those transactions that are allowed through, merchants have to pay a higher fee since there is a higher risk of fraud. If your business is operating online, it is important to make sure that you always enter information in all fields that are required.

Address verification system, is a system that will, as the name states verify the address. If you enter information on an order through your virtual terminal, while the bank is checking for the balance and available credit of the cardholder, it is also checking different parts of the address to make sure it checks out. For instance, the bank will check; the address, city, state and most importantly the zip code. After the transaction is completed, the merchant will see what parts of the address checked out and which ones did not. At that point the merchant can send out the merchandise or cancel the order.

There are two parts of fraud on the internet. The first part is making sure the cardholder is the person making the transaction and the second part is making sure that there is documentation that states that the customer has received the merchandise. The CV2 code verifies the first part. The person making the order must have the card in hand to give the CV2 code to your business.

iSpy Fraud is a fraud detection tool developed by Network Merchants which allows for merchants to set their own parameters in preventing fraud. This tool is extremely helpful and was designed and built by merchants that had problems with fraud.

Setup a credit card processing merchant account today!