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. Nowadays, individuals also can use different electronic methods of payment if they purchased items from different shows both online and physical shops. For instance, you can make an electronic payment using a smart card, mobile payment, credit card, debit card, a check 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. There are chances that people lose the card together with other personal details meaning that the person who finds the card can make transactions using your card. Other cardholder frauds can include skimming, account takeover, application frauds, checker to name but a few. There are many countermeasures that have been put in place by different people to combat the cardholder frauds. The following are the ways to combat cardholder frauds.
The issuer of the card that is the company issuing the credit or debit card as a great role to play. The company should take therefore of ensuring that there are fraud detections and other mechanisms to respond to the cardholder frauds such as the Andrew Phillips Cardflex processors. Additionally, there are other detection and prevention software that a company can ensure they engage that will be in a position to notice any unusual patterns of transaction behaviors helping in alarming the company.
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. It is possible is important also to and sure that you use reliable authentication during the payment such as the PayPal if indirectly and also the MiiCard if directly.
It is upon you as a cardholder to report if the card is stolen or you lose it. Be sure also to regularly check the charges and any report of unauthorized transaction that you do not do.
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