Credit card fraud prevention for merchants: 3D secure
This is an XML-based protocol developed by Visa. Visa officially calls the service Verified by Visa, MasterCard has an equivalent called SecureCode, and JCB International has a version they call J/Secure. It’s an extra level of protection for both merchants and consumers. Merchants especially benefit from this just distribution of penalty chargebacks. 3-D stands for the third layer of authentication the technology creates.
Merchants do pay an extra fee, but many feel that it’s a small
price to pay for the added level of security. Also, Visa always protects
their customers. If the customer claims to have never received merchandise,
the case can end up in small claims court.
General
Guidelines for fraud prevention
Credit card fraud prevention tips (researching
the customer):
- International Orders
- Quantity and Frequency
- Addresses
- Common Sense
- Free E-mail Accounts
- Legitimate Domains
Precautionary Methods (from Merchant Side):