Entries tagged with “lance rich”.
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Oct 13 2011
Another year has flown by and the busy season at ProPay is about to begin. We want our merchants to have a successful and stress free holiday season. This is the perfect time to make sure our merchants are up to date on the latest fraud schemes. A fraudulent buyer, chargeback or theft of data can put a damper on your end of year sales. Here are just a few of the most prevalent fraud trends today.
Spam— Unsolicited email, possibly fraudulent from a company that you didn’t authorize to send you messages.
Phishing/Spoofing— Phishers will impersonate a legitimate company by sending fake emails or creating fake Web sites in order to acquire your personal information—like PINs, credit card or bank account numbers.
Spyware— Software that records your personal information without you realizing it. Several anti-spyware software programs are available to combat spyware.
E Commerce Fraud- Before you buy anything online, ask yourself if the site is legitimate. Look seal from trusted companies that have certified the site as safe and secure. If the deal sounds too good to be true, it probably is.
Get-out-of-debt fraud— Many online debt elimination resources are fraudulent. Be wary. Investigate them thoroughly. If they aren’t a legitimate 501(c)(3) nonprofit organization, then it’s likely that they’re trying to take advantage of your debt-related vulnerability.
International schemes— Don’t respond to emails that suggest you have won or inherited money from someone in a foreign country—Nigeria and Eastern European countries are where many of these emails originate. And any scheme that asks you to give advance money for a larger sum in return is too good to be true, and will always be fraudulent.
Evil twin— A fake Wi-Fi network set up near to and often using a similar name as a real public Wi-Fi network, like those in libraries, parks, and coffee shops. If you unknowingly join the evil twin network, the criminal behind it will have access to all of the information on your computer.
Take a few moments to review this list and to research other fraud trends that could impact you and your business. The small investment of time will be worth it in the long run. Here’s to a successful holiday season and a strong push to the finish line in 2011.
Jul 11 2011
Posted by lrich
Know Your Customer describes the process by which ProPay checks the identity and background of its potential merchants. This process, known as KYC, requires that ProPay validate the identity of a customer at sign up and to keep a record of that information for as long as there is a relationship with that customer. Regulations also require ProPay to maintain up-to-date records of a customer so that changes in the customer’s activity can be assessed and reviewed. The main goal of this process is to prevent money laundering and other financial crimes.
ProPay does not want to make the wrong decisions when looking at any type of customer, be it an individual or corporation. This is especially critical at times of volatile economic conditions and when exploring new business partners. Good quality Know Your Customer processes will ensure two key benefits:
- Comfort that ProPay is not exposing itself to excessive risk.
- Sufficiently detailed knowledge of the customer’s identity, business type and validation to sell products which are appropriate and which adhere to ProPay’s Payment Services Agreement.
KYC is a requirement of all financial service businesses and mandated by the US Patriot Act. These requirements are in place to ensure that only appropriate individuals participate in financial transactions. ProPay has taken additional steps to ensure that our KYC procedures meet or exceed those mandated for financial institutions. KYC is one of the most important front end risk processes as we attempt to keep fraudsters and high risk merchants out of our portfolio.
Jun 3 2011
Posted by lrich
Risk/Fraud, ecommerce merchant
In today’s payment marketplace we are faced with fraud schemes that can result in lost time and money as well as decreased confidence in the security of financial instruments. The following is a sample of prevalent fraud schemes that are on the rise:
Skimming- Skimming is the theft of credit card information used in an otherwise legitimate transaction. The thief can capture a victim’s credit card number using a small electronic device (skimmer) to swipe and store credit card numbers. Common locations for skimming are restaurants where the fraudster has possession of the victim’s credit card out of their immediate view. Skimming can be difficult for the cardholder to detect.
Instances of skimming have been reported where the perpetrator has put a device over the card slot of an Automated Teller Machine, which reads the magnetic strip as the user unknowingly passes their card through it. These devices are often used in conjunction with a miniature camera to capture the user’s PIN.
Card Not Present (CNP) fraud-The Internet is a common location for fraud against online merchants. If the card is not physically present the merchant must rely on the cardholder presenting the information over the Internet. It can be difficult for a merchant to verify that the actual cardholder is indeed authorizing the purchase.
Lost/Stolen Credit Cards-When a credit card is lost or stolen, it remains usable until the holder notifies the issuer that the card is lost. A thief could potentially purchase merchandise or services before the cardholder or the card issuer realize that the card is in the wrong hands.
How do you protect yourself against these schemes? There are a few basic steps to prevent or detect early fraudulent activity;
1- Regularly check online credit card activity. In many cases, consumers can see authorized transactions even before their monthly statement is received.
2- If possible, don’t let your credit card out of sight. Look for unusual behavior by the cashier or waiter.
3- Deal with reputable online merchants that employ the latest fraud prevention measures such as CVV2/CVC2 (the 3 digit code on the back of the card).
4- Report lost or stolen credit cards immediately. Most banks have 24-hour customer service to close any affected accounts.
Your financial institution or merchant provider also utilizes fraud prevention tools to detect high risk behavior in an effort to protect your business. ProPay takes pride in ensuring the highest standards of fraud prevention to allow its merchant to focus on growth and business improvement.
May 23 2011
Posted by lrich
Risk/Fraud, ecommerce merchant
Accepting credit and debit cards is an excellent way to grow your business and increase customer satisfaction. However, it can increase the possibility of fraud or disputed transactions. Cardholders can dispute a transaction up to 120 days after making the purchase. Such a dispute is called a chargeback.
ProPay has outlined 3 simple ways to protect you from chargebacks:
1. Communicate with your customers what will appear on their credit-card statements.
Sometimes customers don’t recognize a charge on their statements and dispute the transaction with their issuing bank. When a chargeback occurs those funds are removed from your account and a fee is charged. Let your customers know in advance exactly what will appear on their statements. Your phone number will also appear with the transaction giving the customer the ability to contact you if they have questions. It is also a good idea to encourage your customers to communicate their card purchases to their spouses or significant others to avoid confusion.
2. Gather detailed documentation on every sale.
If one of your customers issues a chargeback, they conditionally have the transaction amount returned to them. However, if you have detailed documentation of your sale, you can issue a rebuttal to get your have the funds returned to you. The better your documentation, the better your chances of winning your rebuttal. Detailed documentation should include a receipt signed by the cardholder. Order forms, invoices, and bills of sale are also effective.
3. Verify your customer’s address, especially if you’re shipping, or don’t have an established relationship.
Sometimes your sales are not face-to-face, and your customer asks to have products shipped to them. Without a way to get a signature or to view the actual card you may not be completely comfortable with a particular customer or transaction. A good way to protect yourself is to verify your customer’s address.
When you process a card transaction, you will enter your customer’s billing address. The results of the address verification will appear after the transaction is submitted. The transaction will still be completed but if you are uncomfortable with the results, you may immediately void the transaction, contact your customer to get the correct address, and re-submit the transaction. A list of these codes, known as the Address Verification Service or AVS, can be found on our website at www.propay.com