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. The demand on the businesses has been very high especially when it comes to 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. Electronic payment methods are one of the results of the demand to change the traditional methods of payment. 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. For instance, you can make an electronic payment using a smart card, mobile payment, credit card, debit card, a check to name but a few.
There are many advantages of using electronic payments, but one of the greatest disadvantages is that you can’t protect your money. It has been proven with many cases being reported of people who have been a victim of electronic money fraud such as credit card or debit card frauds. There are chances that people lose the card together with other personal details meaning that the person who finds the card can make transactions using your card. Other cardholder frauds can include skimming, account takeover, application frauds, checker to name but a few.There are many people who have tried to come up with the countermeasures to ensure that the cardholder fraud is combated for The following are the ways to combat cardholder frauds.
There is the role of the card issuer to play. The company should come up with fraud detection and other processors to help in combating the card frauds, for instance, Andrew Phillips Cardflex processors. Also, there is fraud detection software that the company can come up with to ensure that the notice or detect any unusual behavior or pattern during the transactions which can help in raising a red flag.
The merchant, on the other hand, will also have a responsibility when it comes to combating 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. Be sure also to regularly check the charges and any report of unauthorized transaction that you do not do.