Fraud Detection

The challenge in filtering transactions is knowing whether the filters are really blocking fraud or if they are blocking good sales. While blocking good sales is certainly undesirable, fraudulent sales have the potential to slip through, creating problems for your business.

E-Commerce / CNP Fraud Types

There are two primary types of fraud that occur when processing CNP (Card Not Present) transactions. Both types of fraud can have a devastating effect on your business.

  1. Friendly Fraud - Where a customer actually visits your site and purchases, but then claims the transaction was fraud. Some reasons customers may claim Friendly Fraud are:
    • Buyers remorse
    • Didn't understand the terms and conditions
    • Didn't realize the purchase was valid, usually the spouse
    • Abuse of the fraud protection policies that are heavily weighted in the cardholders favor
  2. Malicious Fraud - Defined as card data being used on your site without the cardholder's permission. This type of fraud is truely harmful. Some forms of Malicious Fraud are:
    • Stolen card data
    • Card phishing schemes
    • Masked order forms
    • Affiliate marketing fraud
    • Some forms of incentivized traffic

Preventing & Reducing Fraud

Chargeback Guardian's Fraud Detection Suite allows you to apply the filters that offer the most protection, while also testing the validity of the filters to minimize "false positives" (orders that are really valid but get marked as fraud). Our Fraud Detection Suite has the following advantages:

  • Choose the filters you want to use.
  • Choose the order of the filters.
  • Can Block or "Flag & Track" transactions to test filters without impacting conversion.
  • Only pay for the filters you actually use. (Just because a filter is enabled, if the transaction doesn't use a particular filter, you do not pay for it.)
  • No long term contract to sign. Can enable or disable filters as you want.
  • Gateway independent (requires integration).

The Chargeback Guardian Fraud Detection Suite offers the ability to turn on an individual or group of filters but still allow a transaction that fails the filter settings to pass on to the gateway. We then track the results of these transactions to see how many are Approved and how many are Declined. We also follow future transactions on these "flagged" cards to see if you are able to continue to have successful transactions for rebills that may take place. By allowing this to happen, a Merchant can then take a look at the numbers and make a business decision about a filters usefulness.

Current Filters

Country Match for Credit Card and Billing Address

The country of the credit/debit card Issuing Bank is the same as the billing address country on the transaction.

Country Match for IP Address and Billing Address

The country of the IP address location is the same as the billing address country on the transaction.

IP Address Country Identifier

Merchant can select to white list countries to accept transactions or black list countries to decline transactions based on the IP address location that is being used for the transaction.

Credit Card Country Identifier

Merchant can select to white list countries to accept transactions or black list countries to decline transactions based on the credit/debit card Issuing Bank country.

IP Velocity Controls

Merchant can define the number of times an IP address can be used within a range of minutes once an approved transaction has taken place.

Credit Card Velocity Controls

Merchant can define the number of times a credit/debit card can be used within a range of minutes once an approved transaction has taken place.

BOT Blocking

Fraud filter that monitors the transaction to see if a BOT is being used.

Credit Card Validation (Free)

Checks the credit/debit card being used in the transaction to ensure that it is a valid credit/debit card number.

BIN Identifier: Prepaid Cards

Checks the credit/debit card being used against a database of Prepaid and Gift cards.

  

CPA Validation

Validates that the cardholder's account has the amount of the re-bill available on the day of the transaction.

Proxy Server Detector

Fraud filter that checks the IP address against a database of known Proxy Servers.

Distance from IP Address to Billing Address

Merchant can select the allowable distance between the registered IP address location and the billing address of the transaction.

Credit Card Number Blacklist

Merchant can upload a list of credit card numbers that they would like to have blocked. Merchant can also have access to the global credit card number blacklist inside of the Fraud Detection Suite.

IP Address Blacklist

Merchant can upload a list of IP addresses that they would like to have blocked. Merchant can also have access to the global IP address blacklist inside of the Fraud Detection Suite.

Email Blacklist

Merchant can upload a list of email addresses that they would like to have blocked. Merchant can also have access to the global email address blacklist inside of the Fraud Detection Suite.

Phone Number Blacklist

Merchant can upload a list of telephone numbers that they would like to have blocked. Merchant can also have access to the global Phone Number Blacklist inside of the Fraud Detection Suite.

IP Address Whitelist

The Fraud Detection Suite can be configured to only accept transactions from an IP address that is registered with Chargeback Guardian.
Talk To A Fraud Prevention Expert For Free >>

Merchant Services