Tips to Combating Cardholder Frauds
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. 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. Examples of electronic payments include the use of credit card, debit card, checks, money transfers, smart cards, mobile payments to name but a few.
One challenge people are found with electronic payment is that it is hard to protect your money from the electronic devices. 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 studies that have been done to help in combating the cardholder frauds. Below are some tips on combating 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. 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.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.
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.