Break or Make Your Business by the RIGHT Choice in the Wide Field of Electronic Payment Gateways...
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While shopping in the field of Electronic Payment Gateways, the importance of available fraud prevention tools cannot be overestimated.
Of course, you can verify the credit card for every order by effective manual checks, but not only do they take time and money to perform, they also prevent the use of real-time credit card processing, which will in turn lead to lost sales. And most important of all, these methods are difficult to scale successfully: A merchant might be able to perform these checks on a small number of orders per day, but how would they cope when the number of orders grows?
One solution to this quandary is to employ automated checking tools. Fortunately, many electronic payment gateways have now integrated anti-fraud screening in their service. In addition to these integrated tools, there is a number of standalone anti-fraud tools available that are suitable for e-merchants, who are either processing their credit card payments offline or who are looking to employ some additional anti-fraud protection measures...
The Most Recommended Way to Reduce Credit Card Fraud Nearly to Nil...
There is an increasing number of electronic payment gateways offering highly effective and sophisticated tools for preventing credit card fraud.
For the protecton of your online business it is crucial to look for electronic payment gateways that focus on fraudreduction, -detection, and -containment programs. This will prove to be the most effective and convenient way of fraud prevention. You have to find an electronic payment gateway provider with the most effective risk management available in the marketplace today.
Sophisticated tools include neural network technologies and cardholder authentication using AVS, CVV2, and micro-deposits. All data is encrypted to eliminate unauthorized access by a secure server with SSL security.
SureFire Premium Processing is a product of SureFire Commerce, a leading provider in the field of electronic payment gateways. It achieves its total risk-management objective by evaluating every single transaction, to predict its potential fraud risk. A transaction may be automatically approved, automatically declined, or out-sorted for manual intervention, depending on the risk score assigned to it. This decision occurs in real time, prior to returning the authorization response to the merchant...
Real-time automated systems predict the fraud risk of every transaction within 500 milliseconds, assigning a risk score to that transaction based on a combination of historical data mining, neural network analysis, and industry-specific rule sets. Depending on the risk score assigned to the transaction, it may be automatically approved, automatically declined, or out-sorted for manual intervention. This decision occurs in real time, prior to returning the authorization response to the merchant...
In a brick and mortar environment everything is quite simple. The customer selects a product in a merchant's shop, pays the price and leaves the store in a hopefully happy mood. The merchant may accept payment in cash or by credit card, swiping the card through a terminal or using a POS (Point Of Sale) software program on his computer, typing in the credit card information. Terminals and POS software forward the credit card information to the credit card processor via telephone lines or a leased land line.
On the other hand, Real Time Online Payment Processing is a fairly complicated process. The more complicated a process, the greater it's vulnerability. Of course, in principle it is just a variation of the same exchange process since the invention of money and the consequent decline of bartering as the main means of any business transaction, but - as we will see now - it involves the cooperation of different intermediate parties and the transmission of crucial data between them.
The customer chooses products on a merchant's web site and selects to pay by credit card. Now the whole point is to get the purchase value transferred from the customer's credit card account into the merchant's credit card account. This may sound simple, but it involves a complex process of information transaction. While the terminal or POS software is directly linked to the aquiring bank's processor, which transfers credit card and other purchase information to the credit card association's network, the information entered by the customer on a merchant's online order form has a longer way to go...
First the transaction information flows from the customers web browser to the website host's secure server using SSL encryption (in case the order form is hosted on your server with your own security certificate. You may also use the certificate of your webhost or an order form hosted on the electronic payment gateway's server).
The secure server connects to the merchant's processing bank via the service of electronic payment gateways. At this point there is no difference, whether the information is received via POS, terminals or electronic payment gateways. After an authorization code is sent back to the bank's processor from the credit card network, the electronic payment gateway returns it to the web server of the merchant, and the merchant's web server will then send the customer's browser a confirmation receipt. The amount due is moved from the card holder's bank to the merchant's processing bank, which moves the money to the merchant's local bank.
This reveals the basic process. As we will see, the requirements of fraud prevention will necessitate to process the information through additional networks and screening tools.
Methods of Risk Management and Fraud Detection Used by Electronic Payment Gateways...
Because if it's "impersonal" nature the whole process of real time credit card payment is prone to fraudulent activities. Contrary to a "card present" situation difficulties already start with the identification of the purchaser. Is he using his own card or one, for wich he is not authorized for, i.e. a stolen card?
To defeat the enemy, one has to first identify him as such, while ensuring smooth transactions for legitimate customers. The whole setup of fraud detection concentrates on the cardholder's identification and on the occurence of irregular patterns during the intended transaction based on a wide variety of criteria...
I can honestly say, that it will be very, very hard to find an electronic payment gateway service for real time Internet credit card processing, that offers similar, to say nothing of better fraud prevention abilities than Surefire Premium Processing... And there are more reasons to recommend their well rounded service: Highly competitive discount rates for high volume transactions and a first class personal support staff...
SureFire started in online gaming and it still "owns" that category. A high-risk transaction is one with a high likelihood of fraud or chargeback - and it does not get higher than online gaming! SureFire faced their initial months under intensive fraud barrage. But as a result, they developed a most efficient anti-fraud technology. The good news for you is that these fraudulent techniques attack gaming (where fraudsters steal cold, hard cash) before they hit regular business customers (where they can only steal merchandise). And that means that SureFire screens your transactions against their "ahead of the curve" fraud database and algorithms, protecting your business against fraudulent orders before they occur...
It is such a relief to deal with SureFire... (Amie Colquhoun, Director Marketing and Communications, Axiom Audio)
The issue of SSL encryption between the merchants virtual (or real) server and electronic payment gateways is not of prime importance for the merchant himself. This is an important feature to boost the confidence of your customers, but contrary to public opinion there are no hackers hovering over your site, waiting to steal credit cards. But considering the fact that SSL encryption makes interference into the transmission of critical data virtually impossible, it will offer additional security also to the merchant, who is the first and foremost one, who definitely gets harmed by the misuse of credit card information. It is a MUST anyway, if you don't want to loose sales big time.
While fraud prevention measures should reduce or eliminate the fraudulent use of credit card data, it should NOT interfere with a smooth ordering process. Everything that requires additional effort from the customer is likely to frustrate the customer.
For example...
SET technology (Secure Electronic Transaction) is a credit card processing protocol that uses digital certificates to ensure the identities of all parties (customer, vendor, bank) involved in a purchase. It will protect both you and your customer.
But...
It requires much greater effort. A surfer must obtain a digital certificate that tells the merchant that he is the rightful owner of the card. Then again, if his browser does not support the "virtual vallet", that will need to be updated, too. Unfortunately, there is little impetus for a surfer to do this as he is already protected by the Fair Billing and Credit Card Act. After all, he looses nothing if his card is used fraudulently.
For the merchant, the best solution means protection without forcing the customer to do any additional work, require any additioanl hardware or software or learn any complicated protocols or processes...
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