Fraud Protection Is More Important Than Ever Before

Why do online payment processing services should provide the high level of security? It is a well-known fact that card not-present transactions are less secure while card is not physically involved. Consequently, stolen credit card data can be easily used by fraudsters. As a result it can lead to the great amount of chargebacks and money losses for your business. (Chargeback can be defined as a dispute between a cardholder and a merchant over a certain amount of money).

Payment processing platforms use different types of fraud protection tools in order to decrease the level of card fraud. All of them are based on some indicators and the deviations from these indicators may signalize about fraudulent activity.

Geolocation based techniques (help to identify the location of customers and to define high risk locations): IP geolocation, proxy detection and credit card BIN file information analysis.

Techniques based on the accuracy of customer supplied data (are used to check whether the supplied data corresponds the previously submitted one): e-mail identity verification, e-mail profile information verification (e.g. gender, age, location, etc.), phone type verification, reverse address lookup and social networks lookup.

Other techniques (are based on the domain analysis the e-mail is registered at, billing and shipping address comparison, etc.): website traffic information analysis, mapping (billing and shipping address) and domain registration look up.

There is one more solution which is commonly used by payment processing software companies — 3D Secure. It used to make online transactions more protected. 3D secure provides additional authentication step: a cardholder needs to enter the code previously associated with the card.

Additional information on 3D Secure Program can be found at #UniPayGateway (read the article). Those who would like to learn more about fraud protection tools and techniques used by modern payment processing software providers can visit Paylosophy Payment Advice Portal.

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Enterprise-scale, open-source, #PaymentProcessing solutions for #Merchants, #PayFacs and PSPs. For more information, visit

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