7 Tips for Verifying Online Credit Card Transactions

(I-Newswire) November 28, 2005 - 1) Perform Address Verification Service (AVS) and Card Verification Value (CVV) checks. If the order passes both checks, accept the order for further processing but do not capture the credit card charge. Instead, select the "Authorization/Pending Capture" mode because fraudsters can easily obtain information to pass these checks. Failing the CVV check indicates that the purchaser may not be in possession of the actual card. Orders that fail the AVS check should be processed with more caution.

2) Lookup the customer's IP address with a geolocation service provider that also detects anonymous proxies. In most cases, the general geographical location of the IP address should match either the billing or shipping address. Orders from anonymous proxies are considered to have higher risks because fraudsters often use anonymous proxies to hide their true IP addresses.

3) Check the geographical location of the IP address against known high-risk countries such as Egypt, Ghana, Indonesia, Lebanon, Macedonia, Morocco, Nigeria, Pakistan, Romania, Serbia and Montenegro, Ukraine, and Vietnam.

4) Check if the goods will be shipped to a mail-forwarding company when the shipping and billing address are different. An order with a mail-forward address is considered risky since the goods may be shipped overseas.

5) Ensure that the provided zip code corresponds to the city and state fields for both billing and shipping address. AVS only checks the zip code and the numeric portion of the street address. Fraudsters may not always have the complete address and may be too lazy do a zip code reverse lookup for additional information.

6) Request that the customer fax a signed authorization form with copies of the front and back of the credit card if the order is suspicious. This is usually fairly effective but fraudsters have been known to be able to create images of the front and back of credit cards using graphic design software.

7) Ask the customer to provide the bank name and customer service phone number as listed on the credit card. Call customer service to verify if the given phone number matches records for the cardholder. If it matches, call the customer to authorize the transaction. If they are unaware of the purchase, suggest that they call the credit card company and report the card as stolen. This is one of the most effective methods, but is time-consuming.

Source: MaxMind
MaxMind is an industry-leading provider of geolocation and online fraud detection tools. To learn more about MaxMind and its online fraud detection products, visit http://www.maxmind.com. For media inquiries, please contact Ed Lin at 617-267-0040 or at pr@maxmind.com.

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