Online Credit Card Transactions Cross-Checking Authenticity

The issue of fraudulent online transactions, which has been increasing exponentially with e-Commerce growth, is a problem for merchants. Thus, online merchants need to be vigilant about detecting the use of stolen credit card details and misuse of the chargeback system. Monetary losses due to chargebacks alone can have serious consequences for merchants.

CAREFULLY OBSERVE BUYER BEHAVIOR

It’s not as easy to observe buyer behavior online as it is when purchases take place in-person; however, it can clear effectively. The first step is automatically taken when cardholder information is verified by a payment processor at the time an order is placed. Merchants need to take this a step further by scrutinizing orders for signs of suspicious activity during the fulfillment process.

Signs of suspicious activity include anything out of the ordinary. Such as unusual order sizes, the frequency of orders from the same buyer, different billing and shipping addresses, subsequent attempts to resubmit an order using different cardholder details after the decline, and multiple orders to the same delivery address using different credit cards. Sometimes a call given to the buyer is all that’s just to clear up any questions and confirm an order.

Cross-checking means it will take a little more time to process some orders. But, considering the consequences of a possible fraudulent transaction, it can be worthwhile.

Advantage and Disadvantage Offline & Online Payment Processing

Most of us clearly understand the difference between the two payment methods that we have. As simple as it sounds, the offline method uses cash money or other valuable items to make a payment/transaction. On the other hand, the online method does not involve any physical money while making a payment.

But the thing is that many of us do not know how these payment methods are different in terms of advantages and disadvantages. In the next section of the article “Offline vs Online Payment Processing”, we will discuss a detailed difference between the both.

Advantages of Offline Payment Processing

There is a reason why most people around the globe still prefer to use cash for their daily money transaction. Some advantages of the offline method of payment are given below:

• The offline transactions are transparent. This means both the lender and receiver are sure about the transaction at the moment of the deal.
• Offline mode of payment is direct and do not depend on any other source. For example, the Internet or payment gateways.
• Easy to use and understand. Many people face difficulty with the online mode of payment.
• Being a traditional method of payment makes it more trusted. People still trust the bank checks and drafts and use them for payments.

Advantages of Online Payment Processing

In the war of Offline vs Online Payment Processing, the online method is winning so far. This is due to some advantages of this mode of payment.

• Speaking of frauds, the online methods are safer as the online payment gateway takes the responsibility for the money during the transactions.
• Online method is quick and easy. You can transfer a big chunk of money with just a swipe of your finger.
• You have the record of all the payments. This helps in reducing the payment frauds.
• Worldwide acceptance and 24*7 availability.
• You can make a transaction in any part of the world without facing the issue of currency difference.

Disadvantages of Offline Payment Processing

It’s not safe at all. The party on the receiving end will have to check and recheck the received payment.

The offline method is limited by many factors by distance and acceptance of another party.

Not recommended for the transaction of a large amount.

Disadvantages of Online Payment Processing

• Card frauds – All of us heard about the credit card and debit card fraud reports.
• Identity theft can cause the loss of money and data of an individual.
• The online method requires the person’s identity in order to make the transactions.

But the good news is these issues can be dealt with. You just need to reach the Merchant Stronghold for more information.

Offshore Merchant Accounts Beneficial For Small Businesses

THINGS TO KNOW

When you own small sized online business or if you are setting up one, you cannot afford to become a victim of fraud. Fraud and scams are the harsh reality of the business world and usually new, small, inexperienced businesses are the target of these scammers. For the purpose of safety of merchants, offshore merchant account provider takes responsibility to protect their clients from online frauds.

The need for offshore merchant account arises where a merchant deals with multi-national currencies. And, various credit cards used by the customers around the world. If you have an offshore merchant account, this will increase the chances of gaining more customers globally and increase annual revenue.

Normally SMBs do not have spare money to invest more in the accounts. This is where offshore can make life easier for merchants having small businesses. If a merchant runs his/her business with proper planning and strategy, he can expand his business. Also, way sooner than expected by gaining more customers nationally and internationally with high profits.

Benefits

1. Some offshore account providers may charge you but there are a few that do not charge a penny for initial setup, which is a beneficial deal for merchants running small online businesses.

2. Offshore accounts operate outside of your home country (where your business setup is), the merchant does not have to pay taxes as he will be out of tax regulation laws of the origin country.

3. Offshore Merchant account provider takes care to protect their clients (small business merchants, having an offshore merchant account) from online frauds.

4. Acceptance of multi-currency

If you want to know more about the benefits of an offshore merchant account give us a call on +1(888) 622-6875, Merchant Stronghold works 24*7, 367 days and with the vast knowledge of offshore merchant accounts, we will handle any type of query that you might throw at us.

Improve Merchant Statistics and Reduce Fraud Levels

Recommendations to Improve Merchant Statistics Below have listed recommendations that could help to reduce fraud level. Merchant must provide an activity plane to reduce fraud levels by the payment system. On the off chance that the merchant doesn't successfully lessen reduce fraud level Risk and Compliance department will close merchant traffic. To avoid penalties and disqualification, Merchant must survey its business processes. The following are recorded suggestions that could reduce fraud level.

Here are some guidelines for preventing Internet, telephone or mail order fraud:

• Request that cardholders provide the following information during the order taking process:
• Cardholder Name, exactly how their name appears on their card.
• Card Number
• Card Expiration Date, four-digit number MM/YY.
• CVV (Card Verification Value) and/or CID (Card Identification Data) for some regions, the three-digit number located on the back of the card in the signature panel.
• Card billing address along with the ship-to address (when necessary).
• Home, business or other telephone numbers where the cardholder can be reached.

For each transaction, be sure to:

• Request and validate the CVV (Card Verification Value) and/or CID (Card Identification Data) for some regions, the three-digit number located on the back of the card in the signature panel.
• Verify the customer’s billing address, either electronically or by our address verification service (AVS).
• Verify the cardholder name, full billing address, email address and phone number with the Issuer in real-time using.
• Check your delivery service contract for who is responsible for merchandise not delivered.
• Get a signature for each delivery and keep all delivery records.
• Do not keycard information to force through a sale for which you have received any declined response to your authorization request.
• If the sale is on a credit card, refund sales on the same card.
• Include your common DBA and customer service number on the customer’s transaction receipt.
• Clearly communicate any and all delivery charges, restocking or other fees.
• Clearly explain any return policies and offer documentation of this policy with each sale.
• When working on a chargeback, document efforts to satisfy the customer. Be sure to respond to all chargebacks.
• Duplicate charges, or installment plans, unless otherwise stated, require an authorization for each sale.

Protect Customer Information on my Website?

• Protecting Customer Information
• Truncate all credit card information.
• Do not store any CID data in your records or on any type of sales data.
• Secure your site. Data MUST be stored in a secure environment that is protected by firewalls from your Website or access to the Internet. This data should be password protected with limited authorized use.
• Do NOT store any customer or credit card information on your Web Server.
• Please refer to your Merchant Operating Regulations for further Card Not Present (CNP) requirements with respect to the submission of sales.