Credit Card Fraud Prevention Best Practices
- 1 About
- 2 Best Practices
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: Fraud Prevention :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’
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