HOW TO SECURE YOUR INTERNET SALES?

Automatic scoring and human attention

Facing the increase of credit card fraud rate when paying on internet, it is mandatory to provide protection tools to e-merchants. Effectively, in excess of the financial loss, the merchant, who is concerned by a too fast growing charge back rate, is then undermining his confidence reserve acquired with his bank partner.

Klik & Pay, the genuine specialist for fraud fighting, provides a two-level control:

Automatic Scoring

The scoring system associates with each transaction a risk quote between 0 and 10. This note is determined by a powerful algorithm based on a very large number of queries

-	International Data Bases queries (Spam, proxy, frauds ...),
-	Information related to the Credit Card (stolen cards files, country of the card issuing bank,...),
-	Behavior and buyer historic on the Klik & Pay gateway during the last six months (several different cards for a single name or a single e-mail address, the same card but several names or several e-mail addresses, number of refused transactions, charge back historic data ...).

Thanks to the multiple certifications (PCI/DSS, ISO standard and Hacker safe security features) Klik & Pay has all the information which is allowing him to trace up to the issuing bank of the credit card. Matching these data with the information of the client’s behavior analysis and the feedback of the multiple queries to the various data bases and blacklists are constituting an actual warranty of reliability that none of the present actors on this market could ever provide presently.

Human attention and screening

Nevertheless, some fraudsters are difficult to detect with an automatic system and the human attention is still a mandatory criteria. This is the reason why our teams, specifically trained and dedicated, are bringing their experience to all the merchants. They study everyday manually each transaction which is processed through the Klik & Pay gateway and if they detect any discrepancy which was not highlighted by the automatic system, they send an alert to the merchant to suggest him to get in touch with his client before proceeding to the order delivery and even in some cases they recommend to reimburse the credit card holder if the fraud sounds to be confirmed.

Moreover the merchant has numerous pieces of information to complete our analysis. He perfectly knows his market, the buyer’s usages, the visitors profile and his regular clients. In order to allow the merchant to participate efficiently in this fraud combat, Klik & Pay provides with every transaction the detailed description of the reason which has contributed to increase the scoring note. Then he has in front of him a multiform list of arguments to make his decision for accepting or rejecting such transaction.

WHAT TO DO IN CASE OF A DOUBT?

In front of a doubt, we recommend to contact the client. Asking for any complementary document by fax or e-mail is a simple way to identify most of the basic fraudsters. Effectively, they will most of the time deny answering to such a request, or if they do, they will send falsified documents and then our teams are there at your disposal to analyze the received documents and advise you about the correct attitude you should adopt. For your clients, this is representing a small inconvenience but on the contrary they will greatly appreciate the way you manage this type of risk, and consequently this will bring added value to your image of a serious merchant concerned by the protection of the Card Holders.

According the consequences generated by the charge backs, in case of a doubt, we do prefer to reimburse the card holder, rather than waiting and taking the risk of receiving the real charge back. It is an effort to be done by the merchant but finally this effort will be recognized as a good return on investment.

WHAT IS THE ACTUAL COST OF A CHARGE BACK?

In excess of the reimbursement of the sale amount to the card holder, you have lost the good or the service, the induced cost of the order processing (dossier fees, delivery fees...), the bank commissions related to the transaction which are never reimbursed and moreover the bank may debit penalties and even ask for closing your account. Finally, after several charge backs registered on your account, you lose a great part of the confidence you had built up between you and your bank partner.

HELPFUL TIPS FOR AVOIDING AND REDUCING CHARGEBACKS

Ask for our special folder: The Credit Card Fraud

In order to help you reducing significantly the fraud in your internet e-commerce, hereunder are a some pieces of advice that you might easily apply. Though, most of the time, it is common sense it is important to remind:

	For first-time shoppers, study and screen specifically larger-than-normal orders or orders shipped rush or overnight. Call the buyer to check this information, check his address and his personal data.
	Restrain the client liabilities during the charge back authorized period. International rules and regulations of the Card Association authorize any card holder to request a charge back during a 6 month period following the debit date (4 months in France).
	For any suspicious transaction, check in your Back Office the number of refused transactions. Thieves since they don’t know the exact credit card holders name and billing address, they will repeatedly try various kinds of combinations to bypass the fraud screening system.
	Give a precise and detailed description of your terms and conditions, of the return policy and of the refund conditions. This will not stop fraudsters but will allow you to gather a consistent dossier to request opposition to the charge back. If you respect and follow your terms and conditions, it will be more difficult for a patently bad faith client to stake your responsibility.
	Be carefull about the billing descriptor on the client’s bank statement When a customer reads a credit card statement, if the name of a business does not sound familiar, then they may do a chargeback for an unauthorized charge. That can be avoided by choosing a processor confirming payments by an e-mail containing all the “ticket” information: i.e.amount, name of the shop, customer service address and phone, and especially reminding the billing descriptor which will be mentioned on the bank statement.
	Check the e-mail address of your clients Sending a complementary e-mail will allow the merchant to be sure that mail address is really valid and that it is possible to communicate easily with the client.
	Analyze the consistence between billing address and delivery address. We do not recommend canceling any transaction for which these addresses are different but if delivery is requested in a different country from billing address, we draw your attention for a potential risk of fraud and advise you to ask for complementary information and contact before delivering the goods.
	Be very cautious when registering a fast increase of orders on your website, even with transactions coming from clients whose personal data indicated are different ; it might be the case of fraudsters who try to use your website for testing stolen credit cards and then use those which are valid on another website.
	Be careful with orders delivered to the same client but paid with different credit cards. The client may use stolen cards for which he has no idea of the maximum debit limit.
	Be cautious with phone orders. Fraudsters will always find a good reason to ask you to type his card information in your computer instead of doing it himself – he may allege being out of computer or internet – but as well requesting an overnight shipping. He is claiming he will mail or fax all necessary proofs asap. Here the crook manages the transaction so that nobody could be able to determine the client origin, because everything will be register under your IP address.