REDUCING ONLINE PHARMACY CREDIT CARD PROCESSING FRAUD

Credit Card Fraud is the worst enemy of an online merchant and the cardholder. The cardholders only lose a few minutes or hours to apply for the chargeback, whereas the online merchants will lose the money and the product because they cannot track down the customer who took the product.

Protecting your online business against credit card fraud is very frustrating and therefore, you should keep your self up – to – date on the anti-fraud technologies that are available in the market. Eliminating or minimizing fraud takes some time, but if you are not aware of how it works then your efforts may not be effective.

A fraudulent transaction occurs when a customer makes purchases on your website using a stolen credit card. Fraudsters have several methods to get credit card information, which they use for purchasing. When the actual cardholder sees his or her monthly statement, he will go to his issuing bank and apply for a chargeback. Once the chargeback is approved by the bank, the online merchant will have to refund the entire money to the cardholder and also pay a chargeback fee to the bank.

According to statistical data, online merchants were charged over $500,000,000 as chargeback fees in the year 2006. This does not include the loss due to irretrievable products and the shipping costs. By now you should have understood the importance of providing security to your online business.

Security can be provided at two levels: ecommerce merchant level and ecommerce merchant account level.

Gateway Merchant Account Level:

Any payment gateway can be attacked by hackers. Therefore, it is very important to get a payment gateway which is safe and secure. Your payment gateway should use the “SSL 128-bit encryption technology” to protect all the information.

It is also use a few supplementary modules provided by MasterCard or Visa. Basically, your customers will be asked to enter a second password with the details of your credit card. This makes it difficult for the fraudsters as they have to acquire an additional detail.

There are several online verification systems like “CW/CVC/CID and AVS” that can provide additional security when used. FSS or fraud scoring systems are automated scripts which give a score i.e. the percentage chance that this order may be a fraud. This score is generated by using the details of the customer and the place of purchase.

E-Commerce Merchant Level:

The online merchants can minimize credit card fraud by just analyzing the order. The online shopping cart and the payment gateway will provide the statistical information for this purpose.

By analyzing the contact details, shipping details, the location and the purchase time, an online merchant will be able to approximately judge the authenticity of an order.

The online merchants must verify all the orders placed before going ahead with the transaction. This is why you should switch the gateways and the shopping cart scripts to the manual mode. The best way to eliminate credit card fraud is: call your customers to verify the order. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.