Latest Ecommerce Anti-Fraud Measures
Sometimes it may seem as if high risk credit card processing companies are working as hard as they can to stay just one step ahead of the “bad guys,” or those people who would try to carry out credit card fraud on ecommerce merchants. In reality, however, fraud rates with ecommerce merchants are actually approaching the levels of on-site stores, according to a recent annual survey of merchant risk. It’s true that account services companies that deal with high risk merchant accounts such as adult merchant account and multilevel merchant account customers do use strict security measures to keep fraud and theft at bay.
Fraud is a costly part of running a high risk business, even though it accounts for just a fraction of the overall sales of ecommerce merchants. Preventing fraud requires diligence and a willingness to stay informed of available prevention methods. Some of the measures used to ward off fraud in the past may not work so well now, which is why some processing companies are now looking to the following anti-fraud measures for protection:
1. Keep track of how much fraud you experience. How can you know if you are improving in your fraud prevention if you have no records with which to compare your progress? Sometimes a high risk credit card processing company will provide metrics information for their clients as a convenience; otherwise it is quite simple to make your own that is specific to your business.
2. Aim for a chargeback rate of less than 1%. Some high risk merchants, such as those who open an adult merchant account, may routinely have a chargeback rate of considerably more than 1%, but with consistent effort this rate can continue to improve. Make that 1% an ultimate goal—it is fine to start a bit higher. Any improvement will help you enjoy increased profits.
3. Utilize fraud-screening tools. When most merchants accept a customer’s order, they proceed to run it through their fraud prevention software’s tools to figure out if it is suspicious. They will then review some orders manually as a last security measure. If you find that you are screening more than about 10% of your transactions, you may not be optimizing your fraud-screening tools. On the other hand, screening too few transactions may mean merchants are letting fraudulent transactions slip through.
4. Use a variety of prevention tools. Some of the most popular fraud prevention tools are Address Verification Service (AVS), the Card Verification Codes (CVS) and manual follow-up of suspicious orders.
5. Learn about velocity check. One of the newest technology measures to prevent fraud is a velocity check, which allows online merchants to see how often a different credit card number is used with the same email and/or computer IP address. This means that industries such as multilevel marketing merchant accounts, who often notice that a single member will use a variety of credit card numbers, can flag such transactions for further review or even denial.
A high risk credit card processing company should be able to provide any high risk merchant, including those with an multilevel marketing account or an adult merchant account, with information about the latest in fraud prevention. If preventing profit loss due to fraud is a priority, most merchants will see that their rate of chargebacks drops significantly over time.
High Risk Credit Card Processor specializes in all types of High Risk Merchant Accounts, including Domestic Accounts, High Volume Merchants and Offshore Merchant Accounts. High Risk Merchant Accounts have the following industries in mind: such as mail and telephone orders, adult entertainment industry, direct marketing companies, dating, online escort services, outcall services, travel industry, telecom, timeshare companies, herbal supplements and diet plan companies, subscription services, membership services and membership clubs, ticket sales, MLM merchant accounts, multi-level marketing companies, bail bonds, pawn shops, water filtration systems, collection agencies, auto rental companies, rare coin and other collectible shops, computers, custom design products, software computer sales and service, detective services, door to door product sales, massage parlors, gun shops, hair restoration businesses, cosmetic surgery, high-end ticket sales, home based and telecommuting businesses, fortune tellers, infomercial merchants, insurance and investment products, custom jewelry design sales, multi level marketing and MLM organizations, phone and internet merchants, seminars, educational institutions, sports collectibles, used auto sales, water purifier sales, weight loss companies, vitamin and herbal supplement merchants, international merchant accounts, companies facing high chargebacks rates, and more.
For additional information about this article or about obtaining High Risk Merchant Accounts, please call 702-898-5568 or email info@highriskcreditcardprocessor.com.
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