Minimize Your Losses from Online Fraud

We know fraud activity can be a major concern for ecommerce merchants. With the NETBANX proprietary risk rules engine, you can minimize your fraud exposure by detecting and stopping fraud before it occurs. We make it our business to minimize credit card fraud.

An integral part of processing transactions through the NETBANX gateway is the wide range of built-in, fraud prevention tools and features. This includes an in-depth, sophisticated, real-time, proprietary risk rules engine, as well as leading global validation tests and fraud-detection services to prevent and detect fraud. Robust and flexible, our risk rules engine also allows you to set customized rules to match your business model or industry.

Risk Rules Engine

The NETBANX gateway includes a proprietary “Risk Rules Engine” that customizes rules designed to minimize fraud on all payment types. They include velocity triggers, geo-IP blocking, customized AVS triggers as well as country and region blocking.

Address Verification System (AVS)

Used to verify the identity of the person claiming to own the credit card. The system will check the billing address of the credit card provided by the user against the address on file at the issuer of the credit card.

CVV and CVV2 match

Used to verify that the person making the transaction is in possession of the credit card by validating the three or four digit code on the front or back of the card.

Positive and negative databases

Checks against “negative databases” to validate whether card numbers match those that have produced fraud or chargebacks in the past. Checks against “positive databases” to recognize trusted customers that have made previous purchases.

Geo-IP address verification

Flags transactions originating from uncommon or suspicious computer configurations.

BIN lookup

Validates the card-issuing bank by checking the BIN (Bank Identification Number) on the credit card (i.e. the first six digits of the credit card number).

Velocity checking

Used to screen multiple payments that originate from the same IP address by checking for repeated transaction attempts from the same computer or network.

Phone number verification

Validates that the phone number provided with the credit card matches the billing information for that card.

Device fingerprinting

Analyzes the source of the transaction to determine previous and current computer behavior, including whether the computer has visited the website before, is white-listed or black-listed, has attempted to use multiple credit cards in rapid succession, is part of a botnet, or is hiding behind a proxy.

Cardholder authentication

Accepts the transmission of data for merchants enrolled in Verified by Visa™ or MasterCard SecureCode™.

3-D Secure™

To further prevent fraud, the NETBANX gateway supports transactions from merchants enrolled in the 3-D Secure™ programs. 3-D Secure™ is a standards protocol created by Visa and MasterCard to add further security to transactions being processed over the internet. Visa offers its program as Verified by Visa (VbV) and MasterCard as MasterCard SecureCode. Both these services offer protection against fraud-related chargebacks at the time of purchase. These services verify the authenticity of cardholders, ensuring that only the actual cardholder can use it to make purchases on the internet. Cardholders sign up for the VbV service through their issuing financial institution and choose their own personal password to authenticate themselves online.

Tips for Reducing Fraudulent Transactions

Card-not-present transactions occur when consumers are not present when making a purchase including purchases on a web site, over the phone or by mail order. These types of transactions carry a high risk of fraud as they can originate from lost or stolen cards or card numbers generated by fraud schemes. When the true card holder receives their statement and sees a charge they did not make it triggers a chargeback. Since there is no imprint or signature, these chargebacks are difficult to dispute. The key to minimizing your losses is having the right fraud prevention and detection tools and business practices. Always be on the alert for transactions with these characteristics.

  • Orders that are larger than normal when you are not familiar with the customer.
  • Customers purchasing several of the same items or very expensive items.
  • Customers who want orders shipped “rush” or overnight.
  • Orders shipped to an international address, since they cannot be verified by AVS (address verification)
  • Service and are very risky unless you know your customer very well.
  • Orders that are shipped to the same address but made on different cards.
  • Orders from Internet addresses using free email services.
  • Transactions charged to account numbers that are sequential.
  • Multiple card numbers given from a single Internet address.
  • Multiple transactions charged to one card over a very short period of time.