A Guide to Combating Cardholder Fraud
Globalization has turned the world to be a small village with many businesses transacting business activities around the world from different locations. Therefore, these a demand on businesses that transact business across the world to change the payment methods that they use. Due to the distance, the businesses required to change the method of payment for instance from the barter trade methods to methods that can be accessed quickly across the world. Electronic payment methods are one of the results of the demand to change the traditional methods of payment. There many companies and individuals who of adapting to the electronic payment method to pay for the items that are purchased from physical or online shops.Examples of electronic payments include the use of credit card, debit card, checks, money transfers, smart cards, mobile payments 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.The fraud could happen for instance when your card is stolen, and especially if it was with other details pertaining the account meaning that you can lose all the money in the account. Other cases may involve skimming, checker, account takeover, application frauds 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.
The company that issues the card as a part to play in combating the cardholder fraud. The company issuing the card can take a step of ensuring that they come up with processors and other mechanisms that can detect the card frauds for example, the Andrew Phillips Cardflex processors.For example, there are software is that can be installed to ensure that it is possible to notice unusual patterns during transactions hence the raising a red flag.
The merchant, on the other hand, will also have a responsibility when it comes to combating cardholder frauds.For instance, to ensure that the right person is transacting the business with the merchant, it is important to ensure that request for additional personal information such as the card security code, ZIP and also the pin. Additionally, be sure use reliable authentication if indirectly can use PayPal, but directly you can use MiiCard.
The card can be stolen, or you can also use it, and as the cardholder, you should report to the company. As a cardholder, it is important also that you regularly check the charges and any notification of the unapproved transaction.