For the Accounts Receivables Management Industry, allowing your customers to self pay is a great way to increase your revenue and obtain proper proof of authorizations from your consumers. However, there are a few steps as a merchant that you should be aware of in order to protect your business and your customers from online credit card fraud and meet the standard authorization requirements in order to avoid chargeback risk.
The free PDCflow Online Payment Center that is available to you as a PDCflow Subscriber can automate a majority of the online credit card fraud prevention tactics and the authorization requirements needed. Below is a best practices checklist to implement when setting up your PDCflow Online Payment Center to help ensure that the person who is making the online payment to your business is an authorized user of the card.
Use AVS to Discourage Imposters
Require address entry on your Web Payment Form. PDCflow has the ability to enable the address fields to be required for both online credit card payments and payments taken over the phone. A consumer coming to your Online Payment Center will not be allowed to move forward with their payment without entering address information.
This will force the use of an AVS (Address Verification System) Match. The Address Verification System will take the address information entered on the payment and during the authorization process check it against the address the credit card issuer has on file for the card. Having this information is important as an online credit card fraud prevention and investigation tool and can assist in the event of a chargeback.
In addition, capturing address information, will qualify the transaction for a lower rate, usually a significant drop in the Merchant Processing rate, effectively taking the rate from Non Qualified to Mid Qualified on a card not present transaction.
PDCflow will still process the transaction regardless of the AVS result since there are other reasons an AVS result might fail for a valid transaction, such as, the AVS system could be experiencing problems and may be temporarily down, the card may not be found in the AVS system, or the consumer recently moved and card info hasn’t been updated in the AVS system yet.
To qualify for the lower mid qualified rate, an AVS check needs to be done, but a match is not required.
Capture Security Code to Deter Fraud
Require the use of CVV code or Security Code which is printed on all Credit and Debit Cards. Again this is a field that can be set as required on Online Payments from within your Administrative Online Center Set Up Tools within your PDCflow system.
The PDCflow Online Payment Center is equipped with a Help link next to the Security Code field in order to assist your consumer in knowing what information to enter. This pop up box explains where to find the Security Code and explains what it is and how it protects them as the consumer from online credit card fraud.
Requiring this information affords you as the merchant some assurance that the person entering the card info online actually had the card in hand when making the payment. Having this requirement helps to protect against fraudulent transactions from stolen credit card numbers, since the CVV or Security Code is never stored in any payment processing system.
Acquiring this information could also protect you as the merchant in the event of a chargeback. PDCflow automatically checks the CVV or Security Code information entered on the transaction and captures and stores if it is a Match. The transaction will process regardless of the result, but the valuable information if the Security Code was a Match or not will be stored with the transaction and can be used in the event of a chargeback.
Secure Entry Overlay for Online Credit Card Payments
Using PDCflow’s Online Payment Center protects your Customer’s Credit Card information and keeps your business out of PCI Scope because PDCflow uses Secure Entry Overlay Technology. The information entered online is never stored on your server, instead PDCflow , being a Level 1 PCI Compliant payment processor, stores, encrypts and tokenizes this information, keeping your consumer’s credit card data safe and your business out of PCI Scope.
Requiring AVS and Security Codes on your Online Payment Center can narrow your online credit card fraud risk as a merchant and as a Accounts Receivables Management Business; in addition, it can also assist in reducing your risk of chargebacks. PDCflow Payment Processing puts you in control of these requirements and provides you the added protection of Secure Entry for your Online credit card payments.