Countermeasures to Combat Cardholder Fraud
You are living in a world that has become a small village due to the globalization as many businesses transact business activities across 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. To change the traditional methods of payment transactions, electronic payment methods were found to be the best. 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. 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.
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 issuer of the card that is the company issuing the credit or debit card as a great role to play. 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.
The merchant, on the other hand, will also have a responsibility when it comes to combating cardholder frauds.For instance, to ensure that the right person is transacting the business with the merchant, it is important to ensure that request for additional personal information such as the card security code, ZIP and also the pin. As a merchant, it is important that you use reliable authentication such as the PayPal if indirectly and the MiiCard if directly.
It is upon you as a cardholder to report if the card is stolen or you lose it. Be checking your regular purchases and charges and any unauthorized transaction notification.