High Risk Merchant Services Fraud Protection

The Global Pay LTD payment gateway incorporates a suite of fraud detection protocols available for use with any external payment processor when using the API. The fraud detection interface works on all ecommerce transactions and with all banks; as a separate product or an additional fraud prevention tool.

The Global Pay fraud detection service offers an extensive range of customizable settings and tests to check and validate all data that is passed through the gateway and API. Merchants are able to easily integrate their own third party fraud tools with the Global Pay LTD gateway.

Reducing fraudulent transactions consists of utilizing a few chief fraud prevention tools:
• Address Verification Service (AVS) – AVS compares the cardholder’s billing address with the credit card company and the address that is being entered by the customer. The transaction will be declined if the addresses do not match.
• Card Security Code (CSC) – CSC verifies that the card is in the possession of the customer at the time of the sale. Payment gateways and virtual terminals do not store the CVV/CVV2 codes. If the gateway is hacked, the CVC will not be revealed protecting cardholders and merchants from fraudulent transactions. The only way a customer would have the CVC is if they have the card presently or if the CVC had been recorded by a person that has previously handled the card.
• 3D Secure – 3D secure transactions require the customer to provide a password that is only known by the cardholder and the issuing bank. The merchant never knows the password and is not required to capture the password. Similar to the CVC, it is not stored and thus cannot be hacked or known by unauthorized parties.

Nine Great Tips For Reducing Chargebacks And Merchant Fraud
Fraud is dreadful. It is even more dreadful when you have a small company and cannot afford for something to affect your turnover negatively. Although fraud is regrettably bound to happen, merchants can reduce the risk of fraud greatly by opting to take pre-orders.

At the end of the day, it is the responsibility of the merchant to prevent as much fraudulent activity as he/she can. When merchants have plans in place to prevent fraud (during as well as after sales), they can save money and other valuable resources.

Most Common Kinds Of Merchant Fraud
Unfortunately there are many kinds of fraud. One of the most classic kinds of fraud is when a buyer uses a fake or stolen credit card to buy things online. A second example of fraud is when a buyer requests his/her credit card company to remove a transaction that will then result in a chargeback. This usually can happen when a buyer thinks that what he/she received was not the same as what was guaranteed by the merchant. Merchants can dispute such a chargeback, but unfortunately merchants usually lose the majority of chargebacks.

Though, it is not all doom and gloom. If you implement the following nine tips, you can reduce the chargebacks and fraudulent transactions.

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1. Approve Every Single Transaction Manually
This is the most crucial step. When you take the time to look at every single order that you receive manually, you can prevent fraud and pave the way to less fraud in the future too. You can nip bad conduct in the bud and grasp the basic ways fraudsters are trying to exploit your system when you scrutinize all your transactions. After some time you will even be able to automate this process.

Analyze your orders. The shipping address, contact number, size of the order and IP address are some of the basic data that you want to look at. If you spot any pattern, inquire into it. Many tips expand on this initial manual review.

2. Be Sure To Inquire When The Billing And Shipping Addresses Are Not The Same
When you have a buyer who has given you a shipping address that differs from the billing address of his/her credit card, you have to investigate. Just because these addresses are not the same does not mean something is not right, but there is a high correlation between fraudulent activity and addresses that do not match.

You can use a search engine to verify the address or use a site to look up the location of the contact number that was given. When you spot some inconsistencies, phone/email the buyer or cancel the order. If you choose to contact the buyer, ask him/her to list the items that were ordered and confirm his/her name as well as shipping address. When you are still not entirely sure how to proceed, take the size of the order and your rate of fraud into account.

3. Verify Buyers By Using Social Profiles
It is very straightforward to determine whether or not a questionable buyer is in fact OK to do business with thanks to social media. You can use a plug-in to see if your buyer is a bot or not and use it to verify his/her profile with the info you have received.

Be sure to contact the buyer when he/she has used a bogus name, different email address or does not stay in the country that he/she has listed in the shipping address.

4. Inquire Into Repeat Orders From Strange Places
Thanks to the help of analytics, you most likely have a great understanding of your average buyer, for example the location and typical amount spent. A strange purchase made by the exact same IP address or buyer can be a sign of fraud.

Also, when you usually mostly ship to local buyers and all of a sudden see an increase in international orders from the same place, make an inquiry before you send the merchandise. You can uncover a potential fraudster by knowing who your typical buyers are.

5. Make Fraud-pattern Analysis Automatic
As mentioned before, at first it is key that you review every single order manually. After some time and after a few fraudulent cases, you can automate this process with the help of a fraud-detection solution. When you have fallen victim to a specific kind of attack repeatedly, the fraud-detection solution that you have picked will become very sensitive to the weaknesses of your buyers and platform. Thanks to this, your real-time solution to fraud will develop as your company evolves and will nip fraud in the bud.

6. Keep Tabs On How Many Chargebacks You Receive And Money You Lose Because Of Fraud
By consistently measuring these two things, you will be able to tell when you must boost your security and pay more attention to prevention. Merchants should try to limit their chargebacks to 1% or even less.

7. Label Your Merchant Info Properly When Billing Your Buyers
When you fail to include your company’s name clearly, your buyers will be puzzled which could cause chargebacks. This becomes even more troublesome when your merchandise is only shipped many weeks later or when those who usually buy from you are in fact companies. If a staff member buys a product from you with the credit card of his/her manager, a great deal of confusion can be caused when your company’s name is not displayed clearly. So, to reduce chargebacks, ensure that your company is clearly labeled.

8. Allow Your Customers To Use Bitcoin
When a transaction is completed with digital currency like Bitcoin, the transaction fees are less and the actual transaction cannot be undone. So, in other words a chargeback is not possible.

9. When There Is A Chargeback, Contact The Customer
Communication is one of the top strategies to reduce chargebacks. Be responsive, forward updates regularly and request feedback from your customers.

If there is a chargeback, try to contact that customer by making a phone call or sending an email. By doing this, you can possibly sort out the problem. In fact, many problems get rectified when a merchant takes the time to hear what the buyer has to say.

Yes, this is most likely not something that you would like to do, but you can gather some useful info and certainly save a few deals too.

Contact Global Pay LTD and be approved and setup for a payment gateway that includes a full suite of fraud prevention tools.

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