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Merchant Processing Company Provides Tips for Cybersecurity Awareness Month to Avoid Credit Card Fraud

October is National Cybersecurity Awareness Month – a month designed to engage and educate public and private sector partners with the goal of raising awareness about cybersecurity and increasing the resiliency of the U.S. in the event of a cyber incident. In honor of this awareness month, businesses need to understand methods to combat credit card fraud and avoid unnecessary loss for their business, as well as improved management of chargebacks.


Credit card fraud related issues are a major challenge for businesses in the U.S. and worldwide. In fact, the Nilson Report sites that U.S. card issuers lost $3.4 billion and merchants another $1.9 billion in 2012 and the U.S. represented 47 percent of the counterfeit fraud globally.

Taking action to remain cyber aware at all times when shopping or conducting business online should be a priority. To do this, businesses should change passwords frequently, install virus protection on computers and beware of opening suspicious links. Additionally, merchants can use the following tactics to verify the identity of credit card holders and guarantee chargeback or fraud protection:

  • Verify that the card code (CVV), billing street address, zip code and shipping address provided matches the zip code that the cardholder has on file at their credit card issuing bank.
  • Always obtain proof of delivery via certified mail. The signature of the recipient (customer) will aid in chargeback disputes; however, a signature alone will not guarantee winning the dispute.
  • Since address verification does not work overseas, all international sales and shipping are “at the business’ own risk.” Only do business with known customers. Countries to be cautious about accepting credit cards from include: Russia, Nigeria, Romania, Hungary, Mexico, Egypt, the Philippines, Indonesia and others.
  • In more extreme cases, utilize fraud scoring systems to “rate” each cardholder to determine the risk level of a sale. This aids the company in identifying and avoiding high risk sales that may turn into chargebacks or fraud.
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