About

Credit Card fraudsters are a significant problem for online merchants, and is a significant problem especially in the United States. In 2020, $28.5 billion was lost due to credit card fraud. In 2019, Americans reported 271,823 cases of credit card fraud. The United States is the most credit fraud-prone country on the planet, with 38.6% of all reported card fraud losses in 2018.

Best Practices

Here are some best practices for merchants to prevent credit card fraud:

• Use the Address Verification System (AVS) to verify billing addresses.

• Require card security codes such as CVC2 and CVV2 for every purchase.

• Enable 3D Secure 2.0, via Paay.co

• Maintain PCI compliance across all your point-of-sale (POS) systems.

• Consider integrating IPQualityScore

• Consider integrating Kount

• Consider integrating Eye4Fraud

• Employ as many of the rules that are applicable in the UltraCart Fraud Prevention configuration page.
  (*Use the ‘Process Payment and Review’ action for these rules where possible.)
  * Some suggested rules (for complete rules available see: https://ultracart.atlassian.net/wiki/spaces/ucdoc/pages/1377048 :

  • In ‘Address Rules (Premium)' section: ‘If fraud score exceeds __’

  • In 'Address Rules' section: ‘If billing address does not match shipping’

  • In ‘Payment Rules’ section: ‘If user changes credit card number this many times for attempted transactions __’

  • In ‘IP/Subnet Rules’ section: ‘If IP country does not match bill to/ship to country’