Credit Card Fraud Prevention

PRLog (Press Release) – Sep 18, 2009 – If E-Businesses do not solicit a credible Credit Card Fraud Protection cover, revenue loss on account of fraud could cause their downfall. The brick and mortar stores across different continents have now come to realize the potential and the reach of the internet, there is however skepticism in their minds about the payment methodology e-businesses follow and the main bother, it appears is about Card-Not-Present transactions.

The statistics indicate that shopping cart vendors that accept multiple payment modalities like bank transfers, web payment services and credit card payments, are susceptible to fraud more on account of credit card payments than the other two modes of payments, and the majority of online shoppers find credit cards as the most convenient instrument of payment.

The shopping cart vendors are solely dependent on payment gateways for credit card processing and after the basic screening measures the gateway forwards the information to the customer’s credit card issuing company for validation, depending on the credit limit of the customer the transaction is accepted or declined.

The credit card fraud comes to notice only after monthly statements are sent to the customer by the credit card company; the transaction is disputed by the customer and the credit card company reverses the credit given to the shopping cart vendor, it is a chargeback, the credit card owners complete profile was fraudulently acquired and used for the transaction.

If pre-screening measures are available on a shopping cart vendor’s website, the credit card information furnished by the customer is subjected to numerous checks; there are hosted services that use 300+parameters to verify the genuineness of the card, a score ranking the transaction automatically gets generated, based upon which the shopping cart vendor will have the choice to either forward the details to the payment gateway for processing the transaction or scrutinizing it further with a hawk eye.

The hosted services are rendered on a covert scale, without the online customer being aware of it or having to wait endlessly for the completion of the transaction, the entire   pre-screening process is automated and programmed for credit card fraud prevention, the shopping cart vendors that have partnered with screening service providers have been able to combat Credit Card Fraud  and prevent chargeback’s.