and the convenience to trade globally
Ecommerce and Internet sales in particular are associated with so call CNP, card-not-present transactions. The availability of CNP transactions promotes the accessibility of digital world and helps every customer buy a product from the other side of the globe. Merchants also benefit from CNP transaction technologies, because they reach a larger group of clients worldwide.
TBI Payments is an online payment acquirer that covers all of your card-not-present processing needs. We offer every merchant purpose-built, flexible CNP processing solutions that are developed to meet the needs of your business and help you expand your ecommerce operations.
CNP solutions are considered to improve shopping cart conversion rate , so we are experts at CNP and we manage to monitor in-depth all changes in the transaction lifecycle.
CNP transactions have their own specifics and even though they are quick, reliable and convenient for both merchant and the buyer, there are many issues, pertaining to their nature and management.
Card-not-present transactions are usually exposed to vulnerabilities and they are associated with credit/debit card fraud. The latter causes a series of unpleasant situations and losses for the merchant who receives the funds and the genuine cardholder. Having in mind that neither the physical plastic card, not its possessor are available face-to-face with the merchant, clients and merchants should be informed that the online payment acquirer requires additional information to prove the authenticity of the transaction before it takes place. All validation techniques and practices are implemented in order to protect all parties from being a victim of fraud.
We would like to emphasize that TBI Payments may flag some transactions as fraudulent purchase, based on certain criteria: a series of transactions with one and the same card, first time buyers with huge amounts payable, quick delivery, shipping is requested to an address different from the billing one, separate purchases are made with different cards are coming from a single IP address etc.
Major requirements of verifying cardholder's data include: the provision of a valid expiration date of the credit card, full card number, the security number on the back side of the card /CVC or CVV2/. Thus, we ensure that the purchaser has the card with him/her.
Why fraud detection and risk evaluation are essential for CNP sales
It is important to increase profitability in the competitive e-commerce market, so your business needs a secure and robust payment infrastructure that copes with specific risk of card-not-present purchases on your website. Risks are more than in any other type of payment method, because nobody can inspect the physical payment card or verify customer's identity.
CNP transactions can cause revenue losses and result in incredibly high operational costs. The registration of too many fraud cases can affect your merchant account and ability to accept cards for your online purchases. In order to fully manage fraud investigation, you need a team of experts who take care of fraud patterns and cyber crime schemes. By choosing TBI Payments, your card transactions are secured against fraud.
Where the customer is not present at the point-of-sale (i.e. mail order, telephone order and internet transactions) chip and PIN does not affect the current situation. However there are several initiatives at different stages of development, which are outlined below.
If there is a fraud case against a transaction with card which is not physically present, but the payment is approved, then merchant is liable for the reversal of the charge.
What are the risks of accepting payments in card-not-present-environment?
First risk is directed to the card holder and the merchant if a lost or stolen credit card or number is being used by someone who is not the actual cardholder. The second risk is to cardholder whose card has been reproduced in order to withdraw all funds to an online merchant without cardholder's consent.
In order to accept credit/debit card transactions on your website, have repeated purchasers, you should grant your credibility and you should stay in compliance with all security standards.
Is it necessary to dive into the world of security and fraud risks, associated with CNP transactions to minimize the risk or you'd better focus on the core of your business to win customers?
Choose TBI Payments to process your card-not-present transactions, focus on the improvement of your business model and let us take care of the rest.