A Guide to Combating Cardholder Fraud
The world has become a global village with businesses being transacted around the globe. Therefore, these a demand on businesses that transact business across the world to change the payment methods that they use. Due to the distance, the businesses required to change the method of payment for instance from the barter trade methods to methods that can be accessed quickly across the world. Electronic payment methods are one of the results of the demand to change the traditional methods of payment. The use of electronic payment method has become very useful even to individuals after the of purchased various items from online and physical shops because they can pay. Examples of electronic payments include the use of credit card, debit card, checks, money transfers, smart cards, mobile payments to name but a few.
There are many advantages of using electronic payments, but one of the greatest disadvantages is that you can’t protect your money. This is after many people of experienced credit card or debit card frauds. There are chances that people lose the card together with other personal details meaning that the person who finds the card can make transactions using your card. Other cases may involve skimming, checker, account takeover, application frauds to name but a few. There are many studies that have been done to help in combating the cardholder frauds. Discussed below are some of the ways of combating cardholder fraud.
There is the role of the card issuer to play. The company issuing the card can take a step of ensuring that they come up with processors and other mechanisms that can detect the card frauds for example, the Andrew Phillips Cardflex processors. Additionally, there are other detection and prevention software that a company can ensure they engage that will be in a position to notice any unusual patterns of transaction behaviors helping in alarming the company.
The merchant, on the other hand, will also have a responsibility when it comes to combating cardholder frauds. One of the way as a merchant you can combat the cardholder fraud is by requesting for additional information such as the ZIP, pin and 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.
The card can be stolen, or you can also use it, and as the cardholder, you should report to the company. As a cardholder, it is important also that you regularly check the charges and any notification of the unapproved transaction.