Fraud Management Tools
Like it or not, fraud exists. Consumers work hard to protect themselves from fraud and businesses need to do the same. Gravity Payments employs many fraud management tools to assist business owners in protecting their business and information from data thieves. From customizable protections for business owners using payment gateways or virtual terminals to point-to-point encryption and tokenization, your merchant services account is protected.
Credit Card Fraud Statistics
- Sixty-two percent of companies were subject to payments fraud in 2014.
- Checks remain the most often targeted payment method by those committing fraud attacks. Check fraud also accounts for the largest dollar amount of financial loss due to fraud.
- Credit/debit cards are the second most frequent targets of payments fraud.
- A vast majority of survey respondents (92 percent) firmly believe EMV-enabled credit/debit cards will be effective in reducing point-of-sale (POS) fraud.
- Sixty-one percent of survey respondents report that Chip-and-PIN validation will be most effective in preventing credit/debit card fraud.
- Outside individuals are the source of payments fraud attacks at 75% of organizations.
Stats provided from NACM.Org
Types of Fraud Management Tools
Risk Expert Monitoring:
Part of using Gravity Payments for credit card processing means taking advantage of our excellent Risk Team. We have systems set in place and monitored by real people who are experts in the field. If a refund, sale, or some other activity occurs on your account that seems unusual or out of the ordinary, our risk experts will do everything in their power to protect your business. Verifying with you the charges or refunds requested, holding transactions until you can verify the legitimacy of the transaction, and so on.
AVS (Address Verification Service)
This is a verification process often used when purchasing goods or services online. The system will check the billing address and compare it to the data attached to the credit card. This is an additional step of verification to ensure the person using the card is the actual owner.
CVV Code Requirement
The CVV or Card Verification Value is a three-digit code on the back of Visa/MasterCard credit or debit cards. For American Express, it’s a four digit number on the front. By requiring this number to be entered, an additional step is taken to verify the customer actually has the card physically present with them. If someone stole the credit card, but did not retain this number, requiring it would stop the fraud.
Tokenization has to do with the information used to conduct a payment for goods or services. Normally, in a less secure world, a consumer would swipe their credit card through a magnetic stripe reader and the card holder’s data would flow around the networks (banks, card issuers, credit card processors, businesses acceptance device, etc). As technology advances, this methodology lost a lot of its viability, because if at any point the customer’s information was acquired by a malicious force, it could be used without the card holder’s consent. However, tokenization fixes that problem by swapping out the credit card data and replacing it with a unique string of code known as a token. For more information on tokenization, click here.
P2PE or point-to-point encryption is a sophisticated security measure that protects information acquired through swiping or dipping credit cards while accepting payments. It accomplishes this protection by encrypting the data as it travels from point-to-point, gaining approval or denial for the requested purchase amount. For more information on point-to-point encryption, click here.
Besides what is listed above, Gravity Payments has a slew of security features for your business to utilize. We do everything from blocking certain IP addresses from accessing your website to setting up different usernames to manage your backend and allowing different permissions for each. Whatever it may be, we’re always striving to be on the forefront of credit card processing technology to make sure your business is running efficiently, but most important, securely.