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. The demand on the businesses has been very high especially when it comes to the payment methods being used. 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. 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. 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. In many cases you can lose your card and also other personal details in the same bag meaning the person who finds the back can conduct transactions on your behalf without your knowledge. Other cases that can lead to the card from includes account takeover, skimming, checker, application frauds and so on. There are many studies that have been done to help in combating the cardholder frauds. Below are some tips on combating 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. 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.
When it comes to the combating of cardholder fraud, even the merchant as a role to play. 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. Additionally, be sure use reliable authentication if indirectly can use PayPal, but directly you can use MiiCard.
As the cardholder, be sure to report when you lose the card, or it is stolen. As a cardholder, it is important also that you regularly check the charges and any notification of the unapproved transaction.