Card Payment Processing ranks among the most common payment methods used in e-commerce. In fact, card-not-present payments and online shopping go hand in hand; they both offer a fast and hassle-free experience. Yet, the recent news on security breaches in CitiGroup and Sony remind e-merchants of the vulnerability of their safety systems. These attacks have reportedly compromised the card payment details of more than 100,000 customers. This will cause great loss not only to users, but also to merchants attacked by fraudsters using stolen data. E-merchants cannot help but wonder: how safe are the card e-payments their online stores are receiving? Given the frequency and sophistication at which these cybercriminals are acting, it has become vital to manage credit card fraud.

Managing credit card fraud through payment processors and card issuers

Currently, all major card issuers and payment processors do offer a certain level of security (e.g. 3D-Secure, VbV, MasterCard SecureCode, etc.) or a layer of filter against riskier transactions. Most merchants have adopted these methods, with customers also recognizing them as ways of securing transactions. Only a few merchants realize the long-term implications to their businesses, such as the false declination of genuine users.

Furthermore, these payment screening procedures also have little use in the case of an extensive data breach, as proven by the previous DDoS attack on the Visa and MasterCard website. This “Operation Payback” resulted in the failure of all verification tools and the incompletion of direct credit card transactions. As a result, the card issuers experienced a loss of customer confidence and a negative impact on their brand. It is thus crucial for e-merchants to take control of their security systems, rather than rely on card issuers and payment processors to block out fraudsters on their behalf.

Merchants should not rely on pure luck when their businesses are at stake. Instead, they should make sure that their businesses and customers are safe and protected with fraud solutions that are easy to use and can effectively adapt to new fraud attacks. However, it is especially important to stress the fact that that no solution can totally prevent fraud. Rather, merchants should manage fraud with a different perspective: it cannot be completely erased, but it can certainly be managed and minimized.

How can CashShield help?

CashShield’s multilayered technology automatically screens all orders passing through your online store, efficiently detect potentially fraudulent orders and assuring the maximum number of genuine orders is approved. Moreover, CashShield offers the market’s only 100% Chargeback Protection Policy covering any undetected fraudulent order.

CashShield’s 200+ verification tests allow a better assessment of the risk of fraud involved in orders passing through merchants’ websites, including

  • Geolocation Detection to track, match and cross-reference IP addresses
  • Velocity Monitoring tests to analyze card’s expenditure and usage pattern
  • Device Fingerprinting to detect fraudsters by the default information on the device, including a Proxy Detection System

Currently, CashShield is helping a growing number of e-merchants increase their revenue, by considerably dropping their chargeback rate and optimizing the risk credit card fraud present to their online sales. Thanks to our innovative proven risk management algorithm, merchants are able to achieve an optimized return per risk level, and more importantly, focus on their core competencies and accelerate revenue growth.