Credit card fraud can take on many forms, from stolen or lost to someone obtaining a credit using false information. As a merchant, you are liable for any fraudulent transactions that occur through your website, it is therefore vital you select a payment processer that provides extensive credit card fraud prevention services.
Most payment processors utilize a number of prevention methods in order to reduce fraud. These include:
- Address Verification Services – Verification of the billing/shipping address used for an online purchase against that of the card issuer (such as VISA/Mastercard) information for the cardholder.
- Card Security Code checks – CVV, or Card Verficiation Value codes, are used for transactions where the card is not present – such as over the internet. The code is used to verify that the customer possesses the card, not just the card details.
- However, top payment processors will also provide live transaction screening services and an array of fraud prevention tools that you as a merchant can use to minimize fraud (such as, blocking transactions from a particular location).