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. It is no longer the generation that used the barter trade as a method of payment or the use of cash because it is hard to transact cash across the world. After long-term of research and trying to come up with a new method of payment, the electronic payment method was found. There many companies and individuals who of adapting to the electronic payment method to pay for the items that are purchased from physical or online shops. Electronic payment methods include the use of smart cards, mobile payments, credit card, debit cards, checks to name but a few.
One disadvantage of using electronic payment is that it is hard to 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 cardholder frauds can include skimming, account takeover, application frauds, checker to name but a few.There are many people who have tried to come up with the countermeasures to ensure that the cardholder fraud is combated for Discussed below are some of the ways of combating cardholder fraud.
The company that issues the card as a part to play in combating the cardholder fraud. The company should come up with fraud detection and other processors to help in combating the card frauds, for instance, Andrew Phillips Cardflex processors. For example, there are software is that can be installed to ensure that it is possible to notice unusual patterns during transactions hence the raising a red flag.
The merchant, on the other hand, will also have a responsibility when it comes to combating cardholder frauds. 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. As a merchant, it is important that you use reliable authentication such as the PayPal if indirectly and the MiiCard if directly.
The card can be stolen, or you can also use it, and as the cardholder, you should report to the company. Be checking your regular purchases and charges and any unauthorized transaction notification.