Tips for Protecting Your Online Business From Debit and Credit Card Fraud
In 2017, online shoppers spent $453.46 billion in the United States alone.
With profit potential that great, every business with a product or
service that can be offered online is either doing so or risking being
left behind.Wherever there’s money to be made, however, there are people
rushing to learn how best to steal it.
The ubiquity of plastic as the payment method of choice online has resulted in a thriving underworld industry of debit and credit card fraud. And unfortunately for online vendors, one of the most common forms of card fraud is “card not present” theft. Online vendors don’t have the luxury of checking ID to be sure the names match. That being said, there are a number of relatively simple steps that e-merchants can take to mitigate the risk of online card fraud.
Tokenization
One of the best ways in general to reduce fraud risk is to contract with a trusted, established payment processing institution. An experienced payment processing firm should be able to handle everything from accounts receivable collections software for accounting to tokenization. Tokenization is a process that replaces sensitive data, like payment card numbers, with a “token.”
The token is a unique identifier that stands in for the actual card information (which is stored off-network in an ultra-secure data vault). The token can be effectively used by the business as necessary but is meaningless and useless to any hacker who breaches a less-secure local database, network, or payment application.
Emails, Addresses, and Overseas
Sometimes, security measures are relatively low-tech, requiring good old-fashioned risk management. In this case, keeping an eye out for details like the validity of an email address. It’s obviously not a sure-fire sign of larcenous intent, but if an email address appears to be a random string of characters at a free email domain, be wary.
The same goes for orders in which the billing and shipping address differ. There are countless legitimate reasons for that, but it can be a red flag, particularly if expedited shipping is requested.Overseas sales can be tricky. Obviously, the entirety of the planet beyond your borders is a great market, but it’s also a bit of a risk. Make sure the aforementioned payment processing firm you contract with has a solid foundation in international payment processing to help mitigate risks.
Always Require the CVV Code
This one may seem obvious, but a surprising number of online businesses still allow card transactions without requesting the card verification value (CCV) code. The CVV is a three- or four-digit code on the back of a credit or debit card. When hackers, identity thieves, and scammers get their hands on payment card numbers online the CVV is very often not present with that information. Requiring the CVV is therefore a small step that significantly mitigates the risk of fraud.
About Payscout
Payscout has established themselves as one of the most trusted payment processing providers. Facilitating safe and convenient payment solutions across six continents, Payscout has beenlinking merchants and consumers with credit, debit, mobile, ATM, and alternative payment solutions. Managing payments, whether on-site or across mobile and online media, is easy with Payscout. Payscout integrates with more than a dozen software applications and also offers healthcare payment processing as well as specialization in non profit payment processing. Whatever your specific payment needs, Payscout can accommodate you with quick, convenient, friendly, and secure service.
Learn more about Payscout’s payment processing solutions at Payscout.com
The ubiquity of plastic as the payment method of choice online has resulted in a thriving underworld industry of debit and credit card fraud. And unfortunately for online vendors, one of the most common forms of card fraud is “card not present” theft. Online vendors don’t have the luxury of checking ID to be sure the names match. That being said, there are a number of relatively simple steps that e-merchants can take to mitigate the risk of online card fraud.
Tokenization
One of the best ways in general to reduce fraud risk is to contract with a trusted, established payment processing institution. An experienced payment processing firm should be able to handle everything from accounts receivable collections software for accounting to tokenization. Tokenization is a process that replaces sensitive data, like payment card numbers, with a “token.”
The token is a unique identifier that stands in for the actual card information (which is stored off-network in an ultra-secure data vault). The token can be effectively used by the business as necessary but is meaningless and useless to any hacker who breaches a less-secure local database, network, or payment application.
Emails, Addresses, and Overseas
Sometimes, security measures are relatively low-tech, requiring good old-fashioned risk management. In this case, keeping an eye out for details like the validity of an email address. It’s obviously not a sure-fire sign of larcenous intent, but if an email address appears to be a random string of characters at a free email domain, be wary.
The same goes for orders in which the billing and shipping address differ. There are countless legitimate reasons for that, but it can be a red flag, particularly if expedited shipping is requested.Overseas sales can be tricky. Obviously, the entirety of the planet beyond your borders is a great market, but it’s also a bit of a risk. Make sure the aforementioned payment processing firm you contract with has a solid foundation in international payment processing to help mitigate risks.
Always Require the CVV Code
This one may seem obvious, but a surprising number of online businesses still allow card transactions without requesting the card verification value (CCV) code. The CVV is a three- or four-digit code on the back of a credit or debit card. When hackers, identity thieves, and scammers get their hands on payment card numbers online the CVV is very often not present with that information. Requiring the CVV is therefore a small step that significantly mitigates the risk of fraud.
About Payscout
Payscout has established themselves as one of the most trusted payment processing providers. Facilitating safe and convenient payment solutions across six continents, Payscout has beenlinking merchants and consumers with credit, debit, mobile, ATM, and alternative payment solutions. Managing payments, whether on-site or across mobile and online media, is easy with Payscout. Payscout integrates with more than a dozen software applications and also offers healthcare payment processing as well as specialization in non profit payment processing. Whatever your specific payment needs, Payscout can accommodate you with quick, convenient, friendly, and secure service.
Learn more about Payscout’s payment processing solutions at Payscout.com
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