Over the years, I've come across do

Over the years, I've come across dozens of procedure lists for top-tier merchants regarding online transations and fraud reduction. I'll detail several companies verification procedures below.

While most virtual carders are aware of the various procedures in place to verify orders placed online, few actually understand the implementation of fraud scoring, and the order in which these verification methods are used.

The Risk Management Toolkit

• AVS
• CVV
• IP/GEO/BIN
• Cardholder Authentication (VbV/MSC)
• Phone Verifications
• Manual Order Reviews
• Chargebacks & Representments
• PCI Compliance & Data Security

AVS - Address Verification Service

How It Works

•Provides a Match or Non-Match Result for only the Billing Street # and Billing Zip Code… not the actual address. (i.e. “1234 Test Street” is parsed into “1234” just the same as “1234 Wrong Way” would be).

Implementation

•Available on any Internet merchant account and virtually any Payment Gateway.

•Most gateways provide an AVS configuration area where you can specify whether you want to automatically“decline” (i.e. do not settle) an authorization that has an AVS mis-match or non-match.

Benefits

•Easy to implement Limitations

•Works only for U.S., CND, U.K. cardholders so this does not help you scrub most international transactions.

•A growing % of compromised credit cards – especially those obtained through inside jobs or hacked databases– will also contain the necessary information to provide a valid AVS match result.

Recommendation

•If you handle a mix of int’l and U.S. sales, you will want consider scrubbing with AVS on the U.S. transactions but do NOT scrub via AVS for any international transactions as they will always fail. AVS should not beconsidered a primary means of verifying the validity of a transaction. Nearly 20% of the fraud can potentially be eliminated by scrubbing “Non-Matched” AVS match results.

CVV – Card Verification Value

How It Works

•A service with many names – CVV2, CVC2, CID – but the premise is the same for all.

•Provides a Match or Non-Match Result for the 3-digit or 4-digit number embossed on the back of the cardholder’s card. The CVV is NOT generally encoded on the magnetic stripe and therefore is less likely to be captured as part of a card skimming tactic.

Implementation

•Available on any Internet merchant account and virtually any Payment Gateway.

•Most gateways provide an CVV configuration area where you can specify whether you want to automatically “decline” (i.e. do notsettle) an authorization that has an CVV non-match or non-entry.

Benefits

•Works for virtually ALL cardholder accounts – both U.S. and international.

•There is no valid reason why a legitimate cardholder, in pos******* of the card, would not be able to enter a 100% matching numberfor this.

•Merchants are not allowed to store CVV and as such the CVV # is less vulnerable than the data used for AVS.

Limitations

•CVV data can only be used for a real-time transaction. CVV data can not be stored and therefore can not be utilized for Recurring Transactions.

Recommendation

•CVV is a recommended service to utilize for ALL initial transactions processed. Based on our internal charge-back analysis, merchants can reduce their fraud ratesby as much as 70% by simply requiring a matching CVV result.

IP/GEO/BIN Scrubbing

How It Works

•Compares the IP address of the customer purchasing with their stated geographic location (i.e. why is the customer from California ordering from Europe?)

•Compares the BIN # (first 6 digits) of the credit card with the IP or stated geographic location of the customer (i.e. the customer isusing an US-issued credit card but they are from Europe?)

•Based on the IP and BIN # and other customer-inputted data, a vast amount of information can be returned on the transaction.

Implementation

•Custom direct integration into a service such as MaxMind.com

•Use an existing integration that is part of a Shopping Cart such a

Hasil (Bahasa Indonesia) 1:

Selama bertahun-tahun, aku datang di puluhan daftar prosedur untuk papan atas pedagang mengenai pengurangan transations dan penipuan online. Aku akan detail beberapa perusahaan verifikasi prosedur di bawah ini.Sementara kebanyakan virtual carders menyadari berbagai prosedur untuk memverifikasi pesanan ditempatkan secara online, beberapa benar-benar memahami pelaksanaan penilaian penipuan, dan urutan di mana metode verifikasi ini digunakan.Toolkit manajemen risiko• AVS• CVV• IP/GEO/BIN• Pemegang kartu otentikasi (VbV/MSC)• Telepon verifikasi• Manual Order ulasan• Chargeback & Representments• Kepatuhan PCI & Keamanan DataAVS - pelayanan verifikasi alamat Cara kerjanya•Provides pertandingan atau Non pertandingan hasil untuk hanya jalan penagihan # dan penagihan Zip Code... tidak alamat yang sebenarnya. (yaitu "1234 tes Street" diuraikan menjadi "1234" sama seperti "1234 Wrong Way" akan).Implementasi• Warna pada rekening pedagang Internet dan hampir semua pembayaran Gateway.•Banyak Gateway menyediakan area konfigurasi AVS yang mana Anda dapat menentukan apakah Anda ingin secara otomatis "menolak" (yaitu tidak puas) otorisasi yang memiliki pertandingan mis AVS atau non-pertandingan.Manfaat•Sistem untuk menerapkan pembatasan•Works hanya untuk Amerika Serikat, pemegang kartu CND, Inggris Raya sehingga ini tidak membantu Anda menggosok transaksi paling internasional.• Sebuah berkembang % dikompromikan kartu kredit-terutama mereka yang diperoleh melalui dalam pekerjaan atau hacked database-akan juga berisi informasi yang diperlukan untuk memberikan AVS berlaku sesuai dengan hasil. Recommendation•If you handle a mix of int’l and U.S. sales, you will want consider scrubbing with AVS on the U.S. transactions but do NOT scrub via AVS for any international transactions as they will always fail. AVS should not beconsidered a primary means of verifying the validity of a transaction. Nearly 20% of the fraud can potentially be eliminated by scrubbing “Non-Matched” AVS match results.CVV – Card Verification Value How It Works •A service with many names – CVV2, CVC2, CID – but the premise is the same for all.•Provides a Match or Non-Match Result for the 3-digit or 4-digit number embossed on the back of the cardholder’s card. The CVV is NOT generally encoded on the magnetic stripe and therefore is less likely to be captured as part of a card skimming tactic. Implementation•Available on any Internet merchant account and virtually any Payment Gateway.•Most gateways provide an CVV configuration area where you can specify whether you want to automatically “decline” (i.e. do notsettle) an authorization that has an CVV non-match or non-entry. Benefits•Works for virtually ALL cardholder accounts – both U.S. and international.•There is no valid reason why a legitimate cardholder, in pos******* of the card, would not be able to enter a 100% matching numberfor this.•Merchants are not allowed to store CVV and as such the CVV # is less vulnerable than the data used for AVS. Limitations •CVV data can only be used for a real-time transaction. CVV data can not be stored and therefore can not be utilized for Recurring Transactions. Recommendation •CVV is a recommended service to utilize for ALL initial transactions processed. Based on our internal charge-back analysis, merchants can reduce their fraud ratesby as much as 70% by simply requiring a matching CVV result.IP/GEO/BIN Scrubbing How It Works•Compares the IP address of the customer purchasing with their stated geographic location (i.e. why is the customer from California ordering from Europe?)•Compares the BIN # (first 6 digits) of the credit card with the IP or stated geographic location of the customer (i.e. the customer isusing an US-issued credit card but they are from Europe?)•Based on the IP and BIN # and other customer-inputted data, a vast amount of information can be returned on the transaction. Implementation•Custom direct integration into a service such as MaxMind.com•Use an existing integration that is part of a Shopping Cart such a