Mitigating Transaction Disputes: How to avoid fraudulent transactions?
We’ve heard that some of our merchants are experiencing transaction disputes. To help prevent this from happening, it's essential to address the rising risk of credit card fraud, especially with eCommerce transactions, which are all card-not-present (CNP). CNP transactions are inherently riskier, as the physical card and cardholder are not present.
To reduce your risk, consider implementing the following measures:
Address Verification System (AVS): Request the billing address for each transaction and verify if it matches the address on file with the card-issuing bank. Be cautious if the customer uses a different shipping address.
Card Verification Value (CVV) / Card Identification Number (CID): Require customers to provide the CVV or CID. Transactions should not be authorized unless the customer provides the correct code, as this helps confirm that the true cardholder is making the purchase.
A straightforward action to reduce disputes is to deactivate manual entry on your Clover device, as manual transactions are often more vulnerable to fraud.
By implementing these measures, you can better protect your business from fraudulent transactions and reduce the likelihood of disputes.
