Fraud is a fact in this day and age. Especially with the birth and growth of the online purchase, but not all fraud is limited to the card-not-present transaction. We have to be careful of full-blown identity theft as well as credit card number theft. Consumers are very concerned about someone obtaining their credit, debit or check card numbers, and with good reason. But new fraud-protection services offered by MSG Payment Systems are helping to decrease the incidences of identity theft and credit card fraud.

Card-Not-Present Transactions:

Purchases of goods and services by mail, telephone, and Internet are increasing. It’s fast and easy, but is it safe? That’s typically the question both merchants and consumers ask. Merchants want tools and resources that confirm online transactions are legitimate. Consumers want assurance that their account information is being guarded.

 

In order to ensure your business is taking the necessary steps in reducing losses due to fraudulent online transactions, here are a few fraud management solutions:

 

• Address Verification Service (AVS) – Helps reduce the risk of accepting fraudulent transactions by verifying the cardholder’s billing address on filewith the card issuer.
• Card Security Verification – Card security verification uses three digit codes printed in the signature panel on the back of Visa (CW2), MasterCard (CVC2) and Discover (CID) issued credit cards or the four digit code printed on the front of American Express cards. These non-embossed codes are printed on the cards when they are created and are determined by algorithms unique to each card number. Many card-not-present processing solutions support verification of card security codes and will prompt for them during a transaction.
• Card Brand Data Security – Compliance with the Visa and MasterCard data security programs (CISP and SDP) protects your cardholder data and reduces fraud.
• Credit Card Authentication - Verifies a cardholder’s account ownership during an online purchase. With Verified by Visa (VbV) and MasterCard SecureCode, consumers are assured that using a bankcard online is as safe as using it at a local merchant.
• Transaction Scoring - Analyzes relationships between various data fields to identify suspicious orders and to distinguish in real-time the probability of fraudulent transactions.
• Identity Authentication - Operates like a virtual “card present” environment by performing real-time authentication of a purchaser’s identity using proprietary databases.
• Age Verification - Uses an international database of government-issued identifications to instantaneously verify age and identity online.

Card-Not-Present Transactions:

While the rate of fraudulent transactions, which occur in the card present environment, is generally low, we understand that any loss impacts your bottom line. To assist you in protecting your business against unnecessary losses from fraud and chargebacks, the following are helpful tips and tricks for everyone.

• Online Reporting
  Timely access to your transaction data allows you to quickly identify trends that might be indicative of fraudulent activity or improper operating procedures. Online reporting can help you identify transactions and trends, which may indicate a need for corrective measures company-wide or at an individual location.
• Online Chargeback and Retrieval Response
  Receive chargebacks and retrievals electronically and monitor the process through fulfillment. With the addition of a scanner, you can even respond to retrieval requests right from your PC. Timely response will ensure that you do not receive a chargeback for lack of response to a retrieval request.
• State-of-the-art POS Equipment
  From support of Address Verification and Card Security Verification to duplicate card checking, last-4 digit entry and password protection of key functions, having state-of-the-art POS equipment will ensure you have the latest technology to help protect your business from both internal and external fraud.
• Authorization Services
  Protect yourself at the point of sale by receiving an authorization response at the time of the transaction. Chase Paymentech supports redundant processing systems to ensure that the issuer’s authorization is passed to you as quickly as possible.

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