Countermeasures to Combat Cardholder Fraud
You are living in a world that has become a small village due to the globalization as many businesses transact business activities across 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 no longer the generation that used the barter trade as a method of payment or the use of cash because it is hard to transact cash across the world. To change the traditional methods of payment transactions, electronic payment methods were found to be the best. 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.
One challenge people are found with electronic payment is that it is hard to protect your money from the electronic devices. There are many cases that prove the insecurity of having electronic money as many cases report of credit card or debit card frauds. In many cases you can lose your card and also other personal details in the same bag meaning the person who finds the back can conduct transactions on your behalf without your knowledge. Other cardholder frauds can include skimming, account takeover, application frauds, checker to name but a few. There are many studies that have been done to help in combating the cardholder frauds. The following are the ways to combat cardholder frauds.
There is the role of the card issuer 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. 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.
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. As a merchant, it is important that you use reliable authentication such as the PayPal if indirectly and the MiiCard if directly.
As the cardholder, be sure to report when you lose the card, or it is stolen. As a cardholder, it is important also that you regularly check the charges and any notification of the unapproved transaction.