According to a survey, credit card fraud is assumed to result in $31 billion losses by 2020. Now it is not possible to run even small businesses without a credit card payment service. But there are ways to protect your bank account and business from credit card fraud.
Use address verification system
An address verification system (AVS) uses numerical verification process to keep a check on fraudulent activity by comparing the numerals on the card and information on a file. While making a purchase, the numbers on the card are sent to the merchant. When the merchant makes an authorization request, the issuing bank will send the codes and the transaction is further carried out only if there is a match or partial match at least. Receiving a full match indicates less risk processing the transaction further. But there are certain limitations to this kind of verification system. Only banks are able to provide such information about the buyer and not payment software’s and gateways. Moreover, the risk of credit card theft is not eliminated completely.
Get rid of credit card swiping
It’s time to upgrade to new chip readers than swiping the magnetic stripes on the credit card. In the past, counterfeit cards have been the most common route for credit card frauds. But now with the latest chip reading technology, this is eliminated and even if a credit card fraud happens, the merchant is no more liable. Install the EMV, if not done already.
Ensure safety and security of online payments
In cases where payment is being done online or over the phone, you need to remember a few points of utmost importance before finalizing any deal. Lookout for the following:
- Orders of same items. For instance, commodities like chargers. How many apple chargers does one need to charge his phone? Such orders come under the suspicious category and need to be scrutinized carefully.
- Failed AVS or CID/CVV transactions.
- Orders of expensive merchandise like refrigerators, TVs et cetera.
- Multiple same day purchases.
- Multiple orders from the same IP address.
- Orders that are shipped to the same address but having different billing addresses and where different credit card are used.
Tokenization replaces numbers by tokens. It simply replaces the numbers on a credit card by tokens, which is mathematical representation of a number. How this helps is that the merchant doesn’t receive your actual credit card details but tokens instead. This technology is already in place in Samsung pay and Apple pay systems.
Encrypted payment gateways
Secure your payment gateway by encrypting the network access. Use layered password protection having numbers, uppercase and lowercase letters, special characters and two factor authentication.
Use malware to protect your system because cyber criminals use all kinds of software’s and viruses to get the information they need from credit card details to bank details.
The world of cyber crime is daily changing and upgrading. New viruses and antivirus software’s keep coming up. Having an outdated system is the last thing that you want for your business. Also keep educating yourself about credit card thefts and it’s new technology.