Payments – Getting Started & Next Steps

A Guide to Combating Cardholder Fraud

Globalization has turned the world to be a small village with many businesses transacting business activities around 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 hard therefore to continue transacting businesses across the world using the barter trade payment methods hence the need to engage a different payment technique for businesses. To change the traditional methods of payment transactions, electronic payment methods were found to be the best. 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. It has been proven with many cases being reported of people who have been a victim of electronic money fraud such as credit card or debit card frauds.The fraud could happen for instance when your card is stolen, and especially if it was with other details pertaining the account meaning that you can lose all the money in the account. Other cardholder frauds can include skimming, account takeover, application frauds, checker to name but a few. There are many countermeasures that have been put in place by different people to combat the cardholder frauds.Below are some tips on combating cardholder frauds.

The issuer of the card that is the company issuing the credit or debit card as a great role to play. 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. For example, there are software is that can be installed to ensure that it is possible to notice unusual patterns during transactions hence the raising a red flag.

Additionally, the merchant also will have a role to play in combating the cardholder frauds. When the merchant is transacting business with the card, it is important to request for additional information such as the pin, ZIP and also the card security code. It is possible is important also to and sure that you use reliable authentication during the payment such as the PayPal if indirectly and also the MiiCard if directly.

As the cardholder, be sure to report when you lose the card, or it is stolen. Be checking your regular purchases and charges and any unauthorized transaction notification.