Credit card fraud prevention for merchants: Verification methods
CVM (Card Verification Methods) refers to those three or four digits on the back of your credit card. It doesn’t appear on receipts. It’s much harder for criminals to obtain, because transactions still occur without it. Visa says that it reduces fraud by 26% when used with AVS in a CNP (Card Not Present) transaction. There are three variations on CVM’s:
Visa = CVV2
MasterCard = CVC2
American Express = CID
The response codes for CVM’s are far simpler than AVS’. The
five CVV2 response codes include: “Match”, “No Match”,
and “Not Processed”.
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):