Credit Card Processing Risk Management
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Credit Card Processing Risk Management – How Do You Determine the Validity of a Credit Card Sale?

As the top of Risk Management for a large credit score card processing organization, that is a question that I am posed with the aid of merchants who take delivery of credit cards every unmarried day. With the modern-day monetary climate, fraud claims are on the rise and pose a complicated task to more and more traders on a daily basis.

As a service provider, how do you defend your self? Following these easy steps will genuinely assist:

Verify cope with and CVV code – Sounds simple, but that is a step that is frequently neglected. A CVV Code or CARD VERIFICATION VALUE code is a 3 or four digit code located on the credit score card itself and is a security characteristic to help affirm that the cardboard is reachable for “card no longer gift” transactions. Verifying the address and buy dumps CVV code offers the self-belief that the credit score card is within the ownership of the cardholder your managing and an effective address fit have to mean that you are shipping the product to a deal with diagnosed through the issuing financial institution.

Credit Card Processing Risk Management

Be cautious of suspicious International Sales – Now I’m not announcing that each one International Sales are fraudulent; but, it is crucial to comprehend the risks. Address verification cannot be performed and it is difficult for your service provider processor to affirm the sale in the query. Ask yourself does the sale make feel? Why does this individual have to buy the product from you and not a person nearer geographically?

Stay abreast of fraud tendencies/situations – More and greater, we see merchants being approached for”humanitarian” reasons with large purchases needed for orphanages, churches, and so on. These are unusual for the business and are usually despatched through e-mail. Merchants are provided with a couple of credit playing cards and are asked to split the sales to get them via. These sales are regularly invalid. Take the greater step if approached on a Teletypewriter (TTY) line. Unfortunately, every other popular technique for taking benefit of a service provider is using this device to shield one’s identity. Look for the caution signs and take the proper steps to affirm the sale.

NEVER, EVER ship money to the cardholder – A self-explanatory purple flag, there should by no means be a purpose why you will need to refund cash through a financial institution or another wire service. If the cardholder even broaches this situation, WALK AWAY!

NEVER hesitate to touch your merchant issuer and request a Code 10 – A Code 10 authorization request is to be applied if a service provider is trying to technique a credit card and suspects fraud or suspicious hobby. This request is forwarded to the cardboard issuing bank from the service provider processor so records may be tested before the sale is processed.

Remember, we are right here to help. Your risk is our chance and we most effective need you to system legitimate income. Call us and we will advocate the nice direction of movement.

Ultimately, the remaining bit of advice I can provide is that this: FOLLOW YOUR INSTINCTS

Unfortunately, I actually have received emails and calls from loads of merchants who’ve been victimized mentioning that they “knew it did not sound proper” OR “it becomes too correct to be proper” but nonetheless finished the transaction in opposition to their better judgment.

No one is aware of your business and the styles of sales you manner higher than you definitely do. If you’re approached for a sale that doesn’t experience or sound right, walk away. Seek a unique shape of price or not less than, touch your danger department and have them take steps to provide you a possibility to make a knowledgeable decision.

In the end, ask your self this question: “Is this sale in reality well worth the problem of related expenses, chargebacks, and misplaced product?”

Credit Card Processing Risk Management

Rich Placa is the Manager of Underwriting and Risk Management for Federated Payments. He has over eight years revel in assisting revenue growth through minimizing losses and approving new enterprise in creative ways weighing the chance as opposed to praise factors. He provides leadership inside his branch developing and enforcing re-engineered threat management guidelines at the same time as creating techniques to work with traders to maximize their processing whilst protective Federated Payments. Rich acquired his BA from New York University.


Federated Payments takes a consultative method in growing lengthy-status relationships with our merchant clients, Independent Sales Offices and Cash Advance Partners enhancing the way they do business. Federated gives a diverse suite of cost-effective answers that encompass credit and debit card processing, gadget leasing, present cards, loyalty programs, cash advances and take a look at reputation services in addition to MAIA – its industry-main Agent Partner Portal. Headquartered in Melville, NY, Federated Payments is a single source for the full variety of digital charge services.