Stolen cards and fraudulent online transactions cost businesses and card providers millions of dollars in the US every year. Verifying as much as possible seems to help, but how does this work and what will it cost you? Here we will take a look at the most common security measures that are used by most card companies. As more and more online businesses are adopting their use, hopefully, the fraudsters will eventually be put out of business.
Address Verification Service (AVS)
All card providers have this service in place in one way or another. It works by checking the address a customer has supplied you with against the card company’s records. If the two do not agree you can decline the transaction, or try to get further verification.
Credit card companies send a letter code, which indicates if the information partially matches or does not match at all. Of course like all systems it has its drawbacks. What if the card user is moving into a new home and wants the good delivered to their new address? They probably would not tell the card company unto they actually move in, and you could lose a sale because of this. Netverify trusted identity as a service can verify their details in other ways, and can be integrated into your website with ease. It’s a great way to ensure transactions are above board.
AVS’s can have other financial advantages. If you use these services, the card companies will lower your charges on transactions. There is a charge to use an AVS, but generally, you save more than it costs.
Card Verification Value (CVV) And Card Verification Code (CVC)
These are numbers printed on the back of your card. They cannot be stored by businesses and are used to make sure that the person placing the order has the physical card with them. Visa and Mastercard have these as three digits on the back of the card, where American Express has them as four digits on the front.
When you are taking an order or one is being placed online, there is a field for these codes. If they do not match you can decline the transaction. Online purchases can be declined automatically if there are any mismatches, or you can decline them manually if you prefer.
They are an additional layer of security that ensures your customer has the card with them and is not simply using card numbers that have been copied. Visa will not charge you any extra for transactions using these numbers, but Mastercard charges a very tiny fee of $0.0025 per transaction where a CVC or CVV is used.
The savings in fewer fraudulent transactions being successful is far more than the cost.
3D Secure
Verified by Visa and MasterCard SecureCard are fraud prevention tools that involve three different parties to authenticate each transaction. These are yourself, your bank and your credit card company. It will only work for online purchases and cannot be used in person.
When your customer places an order on your site when they arrive at the checkout they will follow the normal processes. Then they are directed to a secure form where they have to input the 3D Secure passcode. If they enter the correct code, the purchases will continue as normal. If it is wrong, the transaction will be declined.
Some businesses do not this extra step in the process, but consumers like it as it makes them feel more secure ordering online.
Neither Visa nor Mastercard charges to use this service, but your website may need updating to accept the technology that runs it or you may have to purchase an extra plugin. You could have some dollars to spend for either of those.
Why So Much Security Is Needed
It is getting harder for criminals to commit fraud in person in physical stores. As that becomes more difficult the fraudsters are turning to online stores to ply their trade and the security measures need to be good to stop them from being successful.
No one can ever guarantee that you as a business or your customer will not fall prey to these criminals, no matter how much security is in place. They have the same access to new innovations as anyone else and will use it to their advantage. All you can do is have the verification processes in place and hope that if someone is trying to commit fraud, they will show it up immediately.
Whichever security measures you have in place, it is crucial that everyone working with you or for you know how to use them so that they are as effective as they should be.
Visits: 172
This is good ,perfect sa mga may business lalo na nagyon mag Christmas na naman .
Very informative. Thanks mamu 💕
Its a big help momshie thanks for the information ..