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PowerPay is committed to helping you
to control and prevent fraud. With the
growth of e-commerce and the rise of
identify theft, fraud prevention has
never been as critical. It is not just
e-commerce and mail order transactions
that require extra diligence. Face to
face transactions are also subject to
continuing fraud attempts.
Scam artists are more
savvy than ever before and understand
the latest security features that Visa
and MasterCard are creating to control
this problem. Merchants must be alert
and take extra precautions wherever
possible, because they are financially
responsible for fraudulent transactions,
including those approved by the bank
that issues the consumer’s credit
card.
Through
the accompanying documents and links,
we hope to provide the basic information
you will need to help prevent fraud
from occurring in your business.
Additional
Fraud Management and e-Commerce Resources
Verified
by Visa
Learn
about the Verified by Visa program to
combat e-commerce fraud
Visa/MasterCard
Terminal Response Codes
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| Ask
the customer to
sign the sales receipt. |
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| Return
the card to customer
and ask for another
Visa card. |
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| Call
your voice authorization
center and tell
the operator that
you have a "Call"
or "Call Center"
response. Follow
the operator instructions.
Note:
In most cases,
a "Call"
or "Call
Center" message
just means the
card Issuer needs
some additional
information before
the transaction
can be approved.
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| Keep
the card if you
can do so peacefully. |
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| Swipe
the card and re-key
the last four digits.
If "no match"
response appears
again, keep the
card if you can
do so peacefully.
Request a Code 10
authorization. |
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Chargeback
Process
Introduction
to the Chargeback Process
Chargeback
As a general rule, cardholders have
the right to dispute any transaction
processed on a Visa/MasterCard. These
disputes are called chargebacks, and
are governed by a series of rules set
forth by these entities. In the chargeback
process, the burden of proof lies with
the merchant. The merchant will be given
the opportunity to provide supporting
documentation to prove the legitimacy
of the transaction. If the merchant
is successful, the transaction is credited
back to his account. If the merchant
is unsuccessful, or does not respond
in a timely fashion, they will be financial
responsible for returning funds to the
consumer who filed the dispute.
Summary of
Chargeback Process
When a chargeback is initiated, the
Issuer gives the cardholder provisional
credit. In turn, the Issuer sends a
request to the merchant's Acquiring
Bank. The Issuing Bank is often required
to submit the documents that support
the customer’s dispute. To facilitate
the handling of the dispute, we use
an “auto-resolve” database
that automatically places the chargeback
in a pending status, waiting for the
Issuing Bank documents to arrive. The
system will auto-resolve the case in
the event the bank documents do not
arrive and will send the chargeback
back to the Issuer. When the bank documents
are received, the system may place the
case in a queue for a chargeback operator
to process, or automatically debit the
merchant and generate the chargeback
letter.
The chargeback letter
gives the merchant about 8-10 days to
respond. No second warning is sent in
absence of a response. At times, the
request comes in at a later time. It
is IMPORTANT that the
merchant always checks the “Respond
by” date on top of the
communication letter to insure that
the response is sent on time. A case
number is assigned to each
disputed item. The merchant must attach
the correct case number to each page
of the rebuttal paperwork. Cardholders
may dispute a charge for various reasons
(i.e. “Non-Authorization”,
“Merchandise not received”),
and often attach a letter of explanation
to the output package. Merchant’s
rebuttal must address each one of the
customer’s complaints. A rebuttal
letter containing the merchant’s
point of view should always accompany
the paperwork. As a default, we send
the letters to the business address
indicated by the merchant. Once the
rebuttal paperwork is received by the
chargeback department, the case is reviewed
and, if applicable, it is reversed back
to the Issuer. A credit to the merchant
for the transaction amount will be granted
in that instance. In the event the documents
do not provide a valid reason to reverse
the dispute, the Chargeback Department
will try to contact the merchant for
more information.
Chargeback fees
will apply on each disputed item. Fees
are debited as follows:
| • |
MO/TO - Internet
accounts: fees are debited immediately
when the chargeback is initiated
by the Issuing Bank. |
| • |
Retail accounts:
fees are charged when the chargeback
is in the working stage at EVO,
and the merchant is given the time
to respond. In the event the chargeback
comes in, but it is immediately
reversed back to the Issuer with
no request of documentation on the
merchant’s side, no charge
will apply. |
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Chargeback
Cycle |
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Visa
First Chargeback initiated
by Issuer
Representment (rebuttal)
initiated by Acquirer
If there is no resolution,
the Issuer can request the
Pre-Arbitration/Arbitration |
MasterCard
First Chargeback initiated
by Issuer
Representment (rebuttal)
initiated by Acquirer
Second Chargeback initiated
by Issuer
Pre-Arbitration/Arbitration
can be initiated by Acquirer. |
|
| Note:
Documentation for
rebuttals needs to arrive
within 10 days for Visa
and 8 days for MasterCard.
The “respond
by” date
is specified on top of the
merchant letter. The merchant
must respond
prior to
that date. |
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Summary of
Retrieval Process
Often the first step in the chargeback
process is a request made by the Issuing
Bank for the transaction information
document (TID), or receipt.
This request is called retrieval. The
Acquirer is obligated to fulfill this
request by providing a copy of the transaction
receipt. Alternatively the merchant
should respond to the Issuer explaining
the reason he cannot honor the request.
A retrieval request can simply be a
request for the information, or could
indicate that the Issuer will initiate
a chargeback in the near future.
Upon notification
of the retrieval request, a letter is
automatically generated to the merchant.
This letter states that the merchant
has a certain number of days (usually
10 days) to respond by providing the
indicated sales draft. On the 11th day,
a second and last letter is generated,
and sent to the merchant. The sales
draft must be submitted to the Issuer
on the 28th day from the moment the
request has been initiated.
A case number
is assigned to each request. The merchant
must include the correct case number
on top of the TID. Once the merchant
has responded to the retrieval, a chargeback
analyst will review the received documentation.
In the event the sales draft is illegible,
wrong, or has missing items, the analyst
will notify the merchant via phone or
fax, when available. If the merchant
does not respond within the given timeframe,
no notification will be sent to the
merchant. A Good Faith Collection letter
will be submitted to the Issuing Bank
when:
| • |
The transaction has
a POS entry of 90 (swiped), and
the signed sales slip is available; |
| • |
For MO/TO transactions, the merchant
matches the AVS (Address Verification),
and provides signed proof of delivery. |
No partial
credit is granted to the customer in
the event of a retrieval request. As
a result, the merchant will not be debited
for the transaction amount, unless the
request turns into a chargeback due
to non response.
back
Chargeback
Details
I.
First Chargeback Phase:
A Cardholder writes
a letter or fills out a “Dispute
Resolution Form” and submits it
to their Credit Card Issuing Bank. The
Issuing Bank then processes a chargeback
along with the “Chargeback Documentation”
(i.e. Cardholder letter) through the
corresponding Association (Visa or MasterCard)
and thus is credited the disputed transaction
amount. The Acquirer or “Merchant
Bank” then receives notification
of the Chargeback upon receipt of the
“Chargeback Documentation”
and is subsequently debited for the
disputed transaction amount. At this
point the Acquirer internal database
assesses the Merchant a “Chargeback
fee”. Acquirer’s systems
then run the Chargeback through a series
of simple filters to check to see if
the Merchant issued credit and for certain
technical errors. At this point one
of two scenarios occurs:
| 1. |
|
If, via the filters,
the Chargeback is deemed invalid,
Acquirer “Reverses”
the Chargeback back through the
Association and eventually back
to the Issuing Bank along with a
debit for the disputed amount. The
Acquirer is then credited for the
amount in dispute. The Chargeback
fee remains on the Merchant’s
account as this is a fee charged
by the Associations as a cost for
processing the Chargeback. This
“First Chargeback” phase
of the dispute is then considered
“Resolved To the Issuing Bank”
and will remain closed unless the
Issuing Bank initiates a “Pre-Arbitration”
notification (Visa) or a Second
Chargeback (MasterCard). |
| 2. |
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If, via the filters, the Chargeback
is deemed valid, the Merchant’s
business checking account is immediately
debited for the amount in dispute
and a letter is sent to the Merchant
the same day advising of the debit
and explaining what, if any, documentation
is required to “Reverse”
this Chargeback. This “First
Chargeback” phase of the dispute
is then considered “Resolved
to the Merchant” and will
remain closed until the Merchant
responds back to the letter sent
to them. |
back
II.
First Reversal Phase:
If the merchant does
indeed respond with a “Merchant
Letter” back to the Acquirer,
a “Reversal Phase” of the
dispute is opened and a Chargebacks
Analyst will review the Merchant Letter
and will see if the merchant’s
response and the overall dispute qualify
to be “Reversed” back to
the Issuing Bank. At this point, one
of two scenarios will occur:
| 1. |
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1. If the Chargebacks
Analyst deems the Merchant’s
response as invalid,
they will close out this phase as
“Request Denied” and
will mail a letter to the Merchant
explaining why the Chargeback cannot
be reversed back to the Issuing
Bank at that time. |
| 2. |
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2. If the Chargeback Analyst deems
the Merchant’s response as
valid, the Acquirer
“Reverses” the Chargeback
back through the Association and
eventually back to the Issuing Bank
along with a debit for the disputed
amount. The Acquirer is then credited
for the amount in dispute and in
turn credits the Merchant’s
business checking account. The Chargeback
fee remains on the Merchant’s
account as this is a fee charged
by the Associations as a cost for
processing the Chargeback. This
“First Reversal” phase
of the dispute is then considered
“Resolved To the Issuing Bank”
and will remain closed unless the
Issuing Bank initiates a “Pre-Arbitration”
notification (Visa) or a Second
Chargeback (MasterCard). |
back
III.
Second Chargeback and Second Reversal
Phase (MasterCard only):
Once a Reversal (and
the subsequent debit) is received back
at the Issuing Bank, they will then
forward the “Merchant’s
Letter” back to their Cardholder
for a response. If the Cardholder wishes
to pursue the dispute further, they
then send in a “Rebuttal Letter”
back to the Issuing Bank and if the
Issuing Bank feels that their response
is valid, will submit a Second
Chargeback. A Second Chargeback
functions just like a First Chargeback,
except a Chargeback fee is not assessed
and the disputed amounted is immediately
debited out of the Merchant’s
business checking account. The Merchant
is sent another letter explaining what,
if any, documentation is required to
pursue this dispute further. This “Second
Chargeback” phase of the dispute
is then considered “Resolved to
the Merchant” and will remain
closed until the Merchant responds back
to the letter sent to them. If the Merchant
does indeed respond to the letter sent
to them a ‘”Second
Reversal” phase of the
dispute is opened. An Acquirer Chargeback
Analyst will then review the letter
and one of two scenarios will occur:
| 1. |
|
If the Chargeback
Analyst deems the Merchant’s
response as invalid,
they will close out this phase as
“Request Denied” and
will mail a letter to the Merchant
explaining why the Chargeback cannot
be pursued further at that time. |
| 2. |
|
If the Chargeback Analyst deems
the Merchant’s response
as valid, they
will submit a “Pre-Arbitration”
letter directly to the Issuing
back advising that the Acquirer
believes the Merchant’s
claim is valid and that Acquirer
will request MasterCard to make
an Arbitration ruling on the dispute
if the Issuer disagrees with the
Merchant’s claim.
| a. |
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If the Issuing
Bank agrees with the Merchant’s
claim, they will simply forward
the funds back to the Acquirer
and the Acquirer will then
credit the Merchant’s
business checking account
accordingly. The dispute at
this point is considered “Successful”
and cannot be re-opened. |
| b. |
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b. If the Issuing Bank
disagrees with the Merchant’s
claim, they will send a
letter back to the Acquirer
advising of such. The Acquirer
will then send a form to
the Merchant requesting
that they sign the form
which makes the Merchant
liable for Arbitration filing
fees. (When MasterCard makes
an Arbitration ruling, it
assesses a $400.00 filing
fee to the loser of the
dispute) If the Merchant
does not agree to the fees,
the Acquirer simply closes
out the Second Reversal
phase of the case as “Unsuccessful”.
If the Merchant does indeed
agree to the fees and submits
the signed form, the Acquirer
then submits an Arbitration
Request to MasterCard directly.
| i. |
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If MasterCard
rules in the Merchant’s
favor, the Issuer is
immediately debited
and the Acquirer is
credited for the amount
in dispute and forwards
the credit to the Merchant’s
business checking account.
The Issuing Bank is
also assessed the $400.00
in filing fees and the
Acquirer closes this
phase of the dispute
as “Successful” |
| ii. |
|
If MasterCard rules
in the Merchant’s
favor, the Issuer
is immediately debited
and the Acquirer is
credited for the amount
in dispute and forwards
the credit to the
Merchant’s business
checking account.
The Issuing Bank is
also assessed the
$400.00 in filing
fees and the Acquirer
closes this phase
of the dispute as
“Successful” |
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back
IV.
Issuing Bank Pre-Arbitration Phase (Visa
only):
Once a Reversal (and
the subsequent debit) is received back
at the Issuing Bank, they will then
forward the “Merchant’s
Letter” back to their Cardholder
for a response. If the Cardholder wishes
to pursue the dispute further, they
then send in a “Rebuttal Letter”
back to the Issuing Bank and if the
Issuing Bank feels that their response
is valid, will submit a “Pre-Arbitration”
letter directly to the Acquirer advising
that they feel that their Cardholder’s
claim is valid that they will request
Visa make an Arbitration ruling on the
dispute if the Acquirer disagrees with
the Cardholder’s claim. The Merchant
is then sent another letter along with
the Cardholder’s rebuttal advising
that they need to respond within 10
days. If the Merchant does not respond
to the letter within the specified timeframes,
the Acquirer Chargeback Analyst will
credit the Issuing Bank back for the
disputed amount and in turn debit the
Merchant’s business checking account.
This phase of the dispute will then
be closed as “Unsuccessful”.
If the merchant does indeed respond
within the specified timeframe, one
of two scenarios will occur:
| 1. |
|
If the Chargeback
Analyst deems the Merchant’s
response as invalid,
they will close out this phase as
“Request Denied” and
will credit the Issuing Bank back
for the disputed amount and in turn
debit the Merchant’s business
checking account. The Chargebacks
Analyst will also mail a letter
to the Merchant advising of the
debit and will also explain why
the Chargeback cannot be pursued
further at that time. |
| 2. |
|
If the Chargeback Analyst deems
the Merchant’s response
as valid, the
Acquirer will then send a form
to the Merchant requesting that
they sign the form which makes
the Merchant liable for Arbitration
filing fees. (When Visa makes
an Arbitration ruling, it assesses
a $400.00 filing fee to the loser
of the dispute) If the Merchant
does not agree to the fees, the
Acquirer simply closes out the
Pre-Arbitration phase of the case
as “Unsuccessful”
and will credit the Issuing Bank
back for the disputed amount and
in turn debit the Merchant’s
business checking account. If
the Merchant does indeed agree
to the fees and submits the signed
form, the Acquirer then responds
to the Issuing Bank advising them
that they do not agree with the
Cardholder’s claim. The
Issuing bank then submits an Arbitration
Request directly to Visa.
| a. |
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If Visa rules
in the Merchant’s favor,
all funds remain where they
are and in addition, The Issuing
Bank is assessed the $400.00
in filing fees. The Acquirer
then closes this phase of
the dispute as “Successful” |
| b. |
|
If Visa rules in the Issuing
Bank’s favor, they are
immediately credited for the
amount in dispute and the
Acquirer is immediately debited
for the same amount and in
turn this amount is immediately
debited from the Merchant’s
business checking account
along with the $400.00 in
filing fees. The Acquirer
then closes this phase of
the dispute as “Unsuccessful” |
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back to top
Preventing
Chargebacks
Most chargeback situations
arise at the point of transaction—at
the time the transaction is completed—and
most can be prevented with a little
training.
Consider these tips to avoid potential
chargebacks...
back
to top
Card
Present Transactions
| 1. |
|
Do
not complete a transaction if the
authorization request was declined.
Do not repeat the authorization
request after receiving a decline.
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| 2. |
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If
you receive a “Call”
message in response to an authorization
request, call your authorization
center. Be prepared
to answer questions. The operator
may ask to speak with the cardholder.
If approved, write the authorization
code on the sales receipt. If declined,
ask the cardholder for another Visa
card. |
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| 3. |
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Make
an imprint for all card-present
transactions. If
you have a point-of-sale terminal
with a magnetic-stripe reader, swipe
the card through the reader for
every face-to-face transaction.
If the terminal isn’t working
or a card’s magnetic stripe
cannot be read, key-enter the account
information and make an imprint
of the embossed information onto
the sales receipt using a manual
imprinter. Even if the transaction
is authorized and the cardholder
signs the receipt, if the receipt
does not have an imprint of the
embossed account number and expiration
date, the transaction may be charged
back to you for “no imprint”
if the cardholder later denies participating
in the transaction. |
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| 4. |
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Obtain
cardholder signature.
The cardholder’s signature
on card-present transactions is
required. Failure to obtain the
cardholder’s signature could
result in a chargeback for “no
signature” if the cardholder
denies authorizing or participating
in the transaction. Always compare
the signature on the sales slip
and the signature on the back of
the card. If the card does not carry
any signature, ask the customer
to show you a picture ID, and have
him sign the card at the time of
purchase. |
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| 5. |
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Make
only one imprint of the card for
each transaction.
Making more than one imprint can
lead to duplicate deposits and increase
the chance of a chargeback. If you
need to redo a sales receipt because
of an error, write “VOID”
across the incorrect sales receipt,
inform the cardholder, and tear
up the incorrect sales receipt in
view of the customer. |
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| 6. |
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Ensure
that transactions are entered into
point-of-sale terminals only once—and
deposited only once.
Entering the same transaction into
a terminal more than once, or depositing
both the merchant copy and the bank
copy of the sales receipt with your
acquirer, or depositing the same
transaction with more than one merchant
bank can all result in “duplicate
transaction” chargebacks. |
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| 7. |
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Ensure
that incorrect sale receipts are
voided and that transactions are
processed only once. |
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| 8. |
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If
your establishment has policies
regarding merchandise returns, refunds,
or service cancellation, disclose
these policies to the cardholder
at the time of the transaction.
Your policy should be pre-printed
on your sales receipts within ¼
inch of cardholder’s signature;
if not, write or stamp your refund/return
policy information on the sales
receipt near the customer signature
line before the customer signs (be
sure the policy shows clearly on
all copies of the sales receipt).
Failure to disclose such policies
at the time of the transaction will
be to your disadvantage should the
customer return the merchandise. |
| |
| 9. |
|
Deposit
sales receipts with your merchant
bank as quickly as possible, preferably
within one to five days of the transaction
date—do not hold on to them.
Failure to deposit in a timely manner
can result in chargebacks for “late
presentment.” |
| |
| 10. |
|
Deposit
credit receipts with your acquirer
as quickly as possible, preferably
the same day as the credit transaction
is generated. Failure
to process credits in a timely manner
can result in chargebacks for "credit
not issued." |
| |
| 11. |
|
Keep
customers informed on the status
of their transactions.
|
| |
| 12. |
|
If
the merchandise or service to be
provided to the cardholder will
be delayed, advise the cardholder
in writing of the delay and the
new expected delivery or service
date. |
| |
| 13. |
|
If
the merchandise ordered by the cardholder
is out of stock and delivery will
be delayed or this item is no longer
available, advise the cardholder
in writing and offer the cardholder
the option of purchasing a similar
item or canceling the transaction.
Do not substitute another item unless
the customer agrees to accept it.
By giving the customer notice and
the option to cancel, you may help
avoid a customer dispute regarding
the merchandise and a possible chargeback. |
| |
| 14. |
|
Ship
merchandise before depositing transaction.
Don’t deposit transactions
with your merchant bank until you
have shipped the related merchandise.
If customers see a transaction on
their monthly Visa statement before
they receive the merchandise, it
could lead to a preventable chargeback.
|
| |
| 15. |
|
When
refunding a customer, always credit
the same card that was used for
the corresponding sale. |
| |
| 16. |
|
Respond
to all sales draft requests.
Should you receive a request
for copy of sales draft, respond
immediately. Failure to send in
copy will result in a chargeback
with no representment rights |
| |
| 17. |
|
Change
printer ribbon frequently- illegible
sales drafts can also initiate chargebacks. |
back
Card-not
present Transactions:
| 1. |
|
Do
not complete a transaction if the
authorization request was declined.
Do not repeat the authorization
request after receiving a decline. |
| |
| 2. |
|
If a customer requests cancellation
of a recurring transaction which
is billed periodically (monthly,
quarterly, annually), always respond
to the request and cancel the transaction
immediately or as specified by the
customer. As a customer
service, advise the customer in
writing that the service, subscription,
or membership has been cancelled
and state the effective date of
the cancellation. Failure to respond
to customer cancellation requests
almost always leads to chargebacks.
|
| |
| 3. |
|
If the
merchandise or the service to be
provided to the cardholder will
be delayed, advise the cardholder
in writing (e-mail for e-commerce
merchants) of the delay and the
new expected delivery or service
date. Also, if the item is out of
stock or no longer available, offer
the cardholder the option of purchasing
a similar item or canceling the
transaction. Do not substitute
another item unless the customer
agrees to accept it. By giving the
customer notice and the option to
cancel, you may help avoid a possible
chargeback |
| |
| 4. |
|
Ship
merchandise before depositing transaction.
Don’t deposit transactions
with your merchant bank until you
are about to or have shipped the
related merchandise. If customers
see a transaction on their monthly
Visa statement before they receive
the merchandise, it could lead to
a preventable chargeback. |
| |
| 5. |
|
When
refunding a customer, always credit
the same card that was used for
the corresponding sale.
Do not offer a check or other form
of payment in place of a refund. |
| |
| 6. |
|
Use the
Address Verification tool (AVS)
and require a perfect match on cardholder’s
billing address. Partial
AVS match will not stand in a “non
authorization” chargeback
scenario. If you need assistance
in setting the AVS properly on your
Gateway, contact your payment gateway
provider or the Loss Prevention
department of your credit card Processor
for assistance. |
| |
| 7. |
|
Make
sure the billing and the shipping
address are the same. If
not, make sure you verify the shipping
address. You can search through
the Yellow-White pages, ask for
a copy of a utility bill, or a copy
of a Driver’s License to validate
the shipping address. You can also
ask the customer to call the Issuer
and add the new address to the billing
information |
| |
| 8. |
|
Obtain
and verify the Card Code (CVV2/CVC2).
This is the 3-4 digits number on
the back of your card (on the front
for American Express). This information
can be captured only if your shopping
cart, and your gateway are set up
for it. Please, contact your webmaster
and/or Gateway provider for details. |
| |
| 9. |
|
Cancellation/Return
Policy needs to be acknowledged
by cardholder. Policy needs
to be acknowledged by the customer.
For telephone or mail order merchants,
policy must be acknowledged with
a signature on the order form, contract,
or invoice. For e-commerce merchants,
policy can be incorporated in the
online Terms and Conditions of the
sale, and require the cardholder
to click on an “I agree”
button before completing the order. |
| |
| 10. |
|
Generate
an RMA number for submitted cancellations. |
| |
| 11. |
|
Obtain
signed proof of delivery. Tracking
numbers without a signature are
not considered valid proof of delivery. |
| |
| 12. |
|
Verify
the Internet Protocol (IP) address.
Even though the IP verification
is not a 100% guarantee, adding
this feature will help you detect
fraud. Your Gateway provider and/or
other software vendor should be
able to help you get started with
this validation process. There is
a variety of IP validation software
that can be downloaded at no cost. |
| |
back
12 potential
signs of Card Not Present Fraud
Keep your eyes open
for the following fraud indicators.
When more than one is true during a
card-not-present transaction, fraud
might be involved. Follow up, just in
case.
| 1. |
|
First-time
shopper: Criminals are
always looking for new victims.
|
| |
| 2. |
|
Larger-than-normal
orders: Because stolen
cards or account numbers have a
limited life span, fraudsters need
to maximize the size of their purchase.
|
| |
| 3. |
|
Orders
that include several of the same
items: Having multiples
of the same item increases a criminal's
profits. |
| |
| 4. |
|
Orders
made up of “big-ticket”
items: These items have
maximum resale value and therefore
maximum profit potential. |
| |
| 5. |
|
“Rush”
or “overnight” shipping:
Crooks want these fraudulently obtained
items as soon as possible for the
quickest possible resale, and aren’t
concerned about extra delivery charges.
|
| |
| 6. |
|
Shipping
to an international address:
A significant number of fraudulent
transactions are shipped to fraudulent
cardholders outside of the U.S.
Visa/MC address verification (AVS)
can't validate non-U.S., except
in Canada and the United Kingdom
or few other banks who participate
in the US AVS program. |
| |
| 7. |
|
Transactions
with similar card account numbers:
Particularly useful if the account
numbers used have been generated
using software available on the
Internet. |
| |
| 8. |
|
Shipping
to a single address, but transactions
placed on multiple cards:
Could involve an account number
generated using special software,
or even a batch of stolen cards. |
| |
| 9. |
|
Multiple
transactions on one card over a
very short period of time:
Could be an attempt to "run
a card" until the account is
closed. |
| |
| 10. |
|
Multiple
transactions on one card or a similar
card with a single billing address,
but multiple shipping addresses:
Could represent organized activity,
rather than one individual at work. |
| |
| 11. |
|
In online
transactions, multiple cards used
from a single IP (Internet Protocol)
address: More than one
or two cards could definitely indicate
a fraud scheme. |
| |
| 12. |
|
Orders
from Internet addresses that make
use of free e-mail services:
These e-mail services involve no
billing relationships, and often
neither an audit trail nor verification
that a legitimate cardholder has
opened the account. |
| |
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Visa
– MasterCard Card Not Present
fraud prevention tools
Appropriate
preventive action can help reduce fraudulent
transactions and potential customer
disputes. Make use of these Visa tools
and controls to verify the legitimacy
of the Visa cardholder and the card
in every card-not-present transaction.
|
|
| Address
Verification Service
(AVS) |
|
|
| Allows
card-not-present
merchants to check
a cardholder’s
billing address
with the card Issuer.
The merchant includes
an AVS request as
part of the authorization
and receives a result
code indicating
whether the address
given by the cardholder
matches the address
on file with the
Issuer. |
|
|
Card
Code
Verification
(CVV2- CVC2) |
|
|
| This
is a three-digit
number imprinted
on the signature
panel of Visa-MasterCard
cards to help card-not-present
merchants verify
that the customer
has a legitimate
card in hand at
the time of the
order. The merchant
asks the customer
for the card code
and then sends it
to the card Issuer
as part of the authorization
request. The card
Issuer checks the
card code to determine
its validity, then
sends a result back
to the merchant
along with the authorization.
|
|
|
|
|
| Enables
e-commerce merchants
validate a cardholder's
ownership of an
account in real-time
during an online
Visa card transaction.
When the cardholder
clicks "buy"
at the checkout
of a participating
merchant, the merchant
server recognizes
the registered Visa
card and the “Verified
by Visa”
screen automatically
appears on the cardholder’s
desktop. The cardholder
enters a password
to verify his or
her identity and
the Visa card. The
Issuer then confirms
the cardholder’s
identity. |
|
|
|
|
|
|
|
| MasterCard
enables e-commerce
merchants to actually
validate that a
MasterCard cardholder
is authorized to
use the card and
qualify the transaction
for a guaranteed
payment that protects
against cardholder
unauthorized chargebacks.
MasterCard SecureCode
runs on your website
and interacts
with both the
customer and their
card Issuer. When
your customer
is checking out,
a simple pop-up
box appears asking
them to enter
a private code
that has been
registered with
their bank.
Their bank then
validates that
code and provides
you with a means
of achieving a
fully guaranteed
transaction. For
more information,
visit http://www.mastercardmerchant.com/securecode/index.html
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