A Guide to Combating Cardholder Fraud
You are living in a world that has become a small village due to the globalization as many businesses transact business activities across the world from different locations.With the businesses carrying transactions around the globe, there’s been a need for the change of the payment methods being used. It is no longer the generation that used the barter trade as a method of payment or the use of cash because it is hard to transact cash across the world. After long-term of research and trying to come up with a new method of payment, the electronic payment method was found. There many companies and individuals who of adapting to the electronic payment method to pay for the items that are purchased from physical or online shops.Examples of electronic payments include the use of credit card, debit card, checks, money transfers, smart cards, mobile payments to name but a few.
One disadvantage of using electronic payment is that it is hard to protect your money. This is after many people of experienced credit card or debit card frauds. In many cases you can lose your card and also other personal details in the same bag meaning the person who finds the back can conduct transactions on your behalf without your knowledge.Other cases may involve skimming, checker, account takeover, application frauds to name but a few. There are many people who have tried to come up with the countermeasures to ensure that the cardholder fraud is combated for Discussed below are some of the ways of combating cardholder fraud.
The company that issues the card as a part to play in combating the cardholder fraud. The company should take therefore of ensuring that there are fraud detections and other mechanisms to respond to the cardholder frauds such as the Andrew Phillips Cardflex processors. Also, there is fraud detection software that the company can come up with to ensure that the notice or detect any unusual behavior or pattern during the transactions which can help in raising a red flag.
The merchant, on the other hand, will also have a responsibility when it comes to combating cardholder frauds.For instance, to ensure that the right person is transacting the business with the merchant, it is important to ensure that request for additional personal information such as the card security code, ZIP and also the pin. As a merchant, it is important that you use reliable authentication such as the PayPal if indirectly and the MiiCard if directly.
As the cardholder, be sure to report when you lose the card, or it is stolen. As a cardholder, it is important also that you regularly check the charges and any notification of the unapproved transaction.