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FRAUDS AND SCAMS IN MERCHANT ACCOUNT
We all know of the many fraudulent cases
that have been reported in the early
days. The frauds are considered as very
intelligent scammers or hackers. Frauds
are also called as a foul play in any
business. The problem which arises in an
internet merchandise business is scams
and fraud. In the year 2002, $ 15
million was calculated as an overall
loss due to the frauds and scams in
merchant account. Fraudster can bring
down any business to the defeated
situations. Various rules and
formalities between the merchant and the
customers have to be followed while
maintaining the merchant account. It
should be considered seriously in order
to prevent the risks. A merchant has to
be very careful while making
transactions with the customers and the
customer also has to be careful with the
merchant they choose to deal with.
In the recent times, the fraudulent
activities are under the control of the
internet banking system and many new
techniques have emerged to prevent the
risk. One of the examples of scam
prevention in a merchant account is
Authorize.Net. The Authorize.Net is an
improved way of detecting a fraud case
or scam while making the transaction
between the customer and the merchants.
It supports Authorize.Net Virtual Check
through which a merchant can accept
payments through electronic check. This
system helps in screening process of any
fraud and scams in merchant account.
This system is supported under the
Secure Sockets Layer (SSL) encryption. A
merchant account holder can manage every
card transaction with the help of these
modern technologies in the banking
sector. This system is very proficient
in detecting any faulty transaction and
dealings. The credit card is
automatically scanned to check any foul
play in the merchandise business using
these modern technologies. The scanner
checks for invalid email addresses, IP
address of the internet network, credit
card validation number and the expiry
dates, background check, etc.
The merchant account holders are offered
128 bit protection of the SSL encryption
through which the Authorize.Net Secure
payment Gateway system processes the
online checks. In the same manner, there
are various branches of the
Authorize.Net. HTML coding is mainly
used as a tool for payment processing
and posting. This is also called as
Authorize.Net Basic. It monitors the
merchant account transactions hence
protecting it from scams and fraudulent
credit/debit card transactions. There is
a high risk of scam and fraud in any
merchant account. Due to the online
marketing system, the merchant and the
customers are anonymous which means both
the parties are not physically present
face to face. The payment gateways make
a safe as well as secure transaction.
The merchant also makes a foul play
regardless of the customers with certain
dealings. While availing a new merchant
account, every little details regarding
the merchant and the type of businesses
he/she carries is important. A customer
can easily check the available database
of the merchant before proceeding with
the dealings. In this way, both the
customer and the merchant can remain on
the safe side while doing business. Some
of them have already been targeted as
victims of such fraud and scam cases.
Frauds and scams in merchant account can
be made from the merchant’s side as well
as the customer’s side. |
