As an online merchant accepting credit card payments, you have numerous security issues that you must be aware of for the safety of your business and your consumers. At this time, there are two main aspects of credit card security for credit card processing, including “AVS” and “CVV”. Both allow credit card transactions to be completed anonymously over the internet, and any merchant accepting credit cards online should require both forms of information of your customers.

Address Verification Service (AVS)
The “AVS”, or address verification service, is used to determine that the address provided by a customer matches the address associated with a credit card account. This helps generate confidence that the person who is entering the credit card details is the person who owns it. While the AVS is not required to process credit card transactions, when it is provided the transaction processor will send a response back with details of how much of the address provided matches the address on the credit card.

An online credit card payment will not be declined if the address is entered wrong, it becomes the merchant’s decision to decide what to do if the address only partially matches or not at all. You have the option of denying the sale, requiring the buyer to submit additional information, or giving them the opportunity to correct the address submitted, before processing the transaction.

Card Verification Value
The card verification value known as “CVV” and sometimes referred to as the CVV-2, is the three to four digit number found on the back of American Express, MasterCard and Visa cards. This number is never listed on any credit card statements or receipts, so that if an individual has found a credit card statement in the trash, they will not be able to complete a sale requiring the CVV code to be entered for verification purposes. The reason for this number not being listed on anything but the actual credit card itself, is when a customer is able to enter the CVV code, it is looked at by the processor as a strong indication that the customer has the credit card in hand. This increases the potential of the card belonging to the person who is attempting to use it to make a purchase online.

It has been proven that most all credit card fraud done online occurs when a thief has found a discarded receipt or someone’s personal credit card statement. By requiring the CVV code to be entered, an online merchant can significantly reduce that type of fraud from occurring.

If a CVV number is entered and is incorrect, the transaction will be declined by the credit card issuer.

Providing Your Consumers with Top Notch Security
If you are going to be accepting online credit cards payment for your products or services, it is very important that you provide your customers with a guarantee that you’re protecting their credit card information.
Credit card processing typically requires that the customer’s information is transferred about four times, which means there are four instances when someone could gain access to the cardholders details. When a customer first sends the credit card information to you via your checkout or web based form. You are solely responsible for security as the internet merchant, at this stage in the credit card transaction process. Having a secure server and a valid security certificate with the https protocol will protect and encrypt private information you receive from customers.

You will want to be sure that the credit card processing software you use, also known as a payment gateway, for your business is secure by using a reputable processing company with experience in online payments. As customer information is moved in and out of a database through the transaction process, the security must be top of the line and this is ensured by choosing a solid company that offers encrypted software for this part of the process.

Finally, when customer credit card information is viewed or handled by you or anyone inside your company, it is just as important that you ensure security at this stage as well.

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