Credit Card Processing Risk Management

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As the head of Risk Management for a large credit card processing company, this is a question that I am posed with by merchants who accept credit cards every single day. With the current economic climate, fraud claims are on the rise and pose a complex challenge to more and more merchants on a daily basis.

As a merchant, how do you protect yourself? Following these simple steps will certainly help:

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7 Payment System Risk and Risk Management in: The Payment System

Verify address and CVV code – Sounds simple, but this is a step that is often ignored. A CVV Code or CARD VERIFICATION VALUE code is a three or four digit code located on the credit card itself and is a security feature to help verify that the card is on hand for "card not present" transactions.

Verifying the address and CVV code provides the confidence that the credit card is in the possession of the cardholder your dealing with and a positive address match should mean that your are shipping the product to an address recognized by the issuing bank.

Be wary of suspicious International Sales – Now I'm not saying that all International Sales are fraudulent; however, it is important to realize the risks. Address verification cannot be performed and it is difficult for your merchant processor to verify the sale in question.

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