FAQs regarding High Risk credit card
authentication and security
With the increase in the number of cases
of fraud using credit cards, fraudulent
usage, identity theft and internet
phishing, people get concerned about
security while using their credit cards.
Fraudulent usage of credit cards is very
annoying and it leads to the damage of a
trader’s credit. Hence, it is not
surprising to see a number of people
asking questions about credit card
authentication and security. Following
are a few frequently asked questions
(FAQ) regarding security of credit
cards:
-
How do store terminals or
ATM know a consumer’s PIN number?
The personal identification number or
PIN is most often used to authenticate a
consumer’s identity when the ATM or
credit card is used. When the PIN number
is chosen for the first time by a
consumer, it will be “encrypted” –
storing in the form of secret codes of
symbols and letters – which is stored
either in databases of on magnetic
stripes behind the credit card.
-
If the PIN number gets
stored in databases, does it mean that
credit-card employees or banks can
access them?
The method of encryption used by credit
cards and ATM is known as “one-way
encryption”. This simplifies the
verification process for a financial
institution’s computer to verify the PIN
and the one that is given. However, it
is next to impossible to extract PIN
codes in a text format from encrypted
databases.
-
How is the card “read” by
the machine?
The stripe behind the ATM card or credit
card is known as “magnetic stripe”. This
stripe consists of several tine
iron-based magnetic particles. A credit
card can be written in the same manner
in which computer hard drives are
written, that is, by the changing charge
of magnetic interaction. The stripe is
written with a consumer’s identifying
data and account number. When the card
is swiped, the details are read and sent
through a modem to the “acquirer”
company – a firm which acquires payment
guarantees from credit card companies on
the basis of the details stored on the
magnetic strip of a credit card.
-
Is it insecure and
dangerous to buy online?
The information on the credit card is
under less threat while it is being
transmitted online when compared to
handing a card t a clerk at a store. The
real threat to the information on the
credit card is not from hackers who hit
online traders, or stealing information
of credit cards via phone lines or
modem. The real threat comes from 2
different directions:
-
Hackers who use back
doors in order to get access of bank
records, credit card firms and
repositories of data.
-
The other danger is from
a practice known as “phishing”.
In the case of phishing, the thieves of
credit cards trick consumers to enter
the credit card information and the
consumer’s identification. They usually
build web sites which look similar to
sites such as American Express and
Paypal in order to capture a consumer’s
information so their own vested
interests.
Contact
one of our helpful account
representatives to assist you in the
setup of
a
high risk merchant account,
high risk ach account or
offshore merchant account for a
high risk merchant. |