A Guide to Combating 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.With the businesses carrying transactions around the globe, there’s been a need for the change of 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. 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.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. 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 cases may involve skimming, checker, account takeover, application frauds to name but a few. There are many studies that have been done to help in combating the cardholder frauds. The following are the ways to combat cardholder frauds.
There is the role of the card issuer 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. Additionally, there are other detection and prevention software that a company can ensure they engage that will be in a position to notice any unusual patterns of transaction behaviors helping in alarming the company.
When it comes to the combating of cardholder fraud, even the merchant as a role to play. One of the way as a merchant you can combat the cardholder fraud is by requesting for additional information such as the ZIP, pin and 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. As a cardholder, it is important also that you regularly check the charges and any notification of the unapproved transaction.