In a recent survey, online merchants revealed that they are most worried about credit card fraud in the e-Commerce business. They expressed anxiety over their apparent vulnerability to fraudsters, and feel that they are spending too much time reviewing orders to spot cases of fraud, when they could have used the time to improve other aspects of their business. Other than the usual address verification system (AVS), most merchants are seeking ways to expedite credit card fraud detection, and not just discriminate against common warning signs like expedited shipping and international addresses.

For this we would advise merchants to take note of these quick payment gateway-related steps that can be performed in order to stop fraudsters in their steps:

Tip 1: Look at your daily reports from the payment gateway
This should be done every day before orders are processed. By scrutinizing the transaction, you’ll gain an insight into the various transaction attempts before your eyes, and instantly see declined transactions. It’s common knowledge that fraudsters favor online stores to test their fraud activities so you can conclude that numerous attempts made in a single order may be the result of thieves performing their dirty card testing fraud.

Tip 2: Look into shopping cart lockout feature
Simply said, this feature locks out suspicious customers whose credit cards are declined numerous times in a single session. Again this is an instance of credit card testing at work. If you shut out the thieves, less damage can be done to your web business. Using IP or cookie-based protocols, this shopping cart feature can be utilized if it’s available from your shopping cart software provider. Once obtained, you can then configure how many times a card can be declined before the “card holder” gets locked out. You can also choose to temporarily “ban” him for an hour or a day. This obstacle will stop fraudsters in their tracks and you will then be safe from their malicious activities.

Tip 3: Invest in add-on fraud services
You may think your payment gateway provider is trying to sell you a lot of features you don’t need, but if you take a closer look at some add-on features, you may find several that can help you weed out unscrupulous fraudsters. Beyond the standard Address Verification System, these features are designed to run additional searches, and dig deeper into a credit card’s history and background. You’ll then find out if the particular card is notorious for frequent chargebacks or have been reported stolen or lost. These add-on fraud detection services cost at least $20 to 30 a month but if you consider the money you can save from the clutches of fraudsters, the amount will suddenly seem like peanuts!

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