Comments on: What does a fraudulent transaction look like?

By: The Merchant Account Blog » Giving the right response - AVS and declined card messages

Fri, 02 Nov 2007 13:53:10 +0000

[...] single response for any decline, AVS mismatch, error or otherwise because it eliminated one of the lesser-known types of online fraud. Card testing is not something that should be overlooked, because it can have severe consequences [...]

By: jestep

jestep — Thu, 28 Sep 2006 21:56:32 +0000

As a merchant, I am a victim of a fradulent order. My Card Processor accepts the transaction even if the CVV and AVS fail - These systems are in place to protect everyone, and yet they donâ€™t use them, leaving me out in the cold, stuck with a huge chargeback.

How are you accepting your credit cards? If you are using a payment gateway, there should be a method to specify to decline all AVS mismatches or errors. Even the use of both AVS and CVV don't prevent fraudulent transactions entirely. I do feel for your loss, and I know how frustrating it is. We probably get about 5 fraudulent orders per week, and maybe one or two get through per year. I hate to say that it's a part of doing business because that is unacceptable, but it really is a part of doing business.

The reason that a processor doesn't stop non-AVS transactions on their end is that there are circumstances where businesses don't want or need to use AVS. There are also AVS errors, and other miscellaneous issues that can create problems for legitimate transactions. It is up to a merchant to make sure that AVS is being used.

By: Fraudulent OrderVictim

Fraudulent OrderVictim — Thu, 28 Sep 2006 21:47:04 +0000

As a merchant, I am a victim of a fradulent order. My Card Processor accepts the transaction even if the CVV and AVS fail - These systems are in place to protect everyone, and yet they don't use them, leaving me out in the cold, stuck with a huge chargeback.

By: Barry Holt Blank

Barry Holt Blank — Sat, 23 Sep 2006 22:15:38 +0000

Merchants should also be aware that a rogue employee may possibly produce unauthorized credits to their personal credit card account at the expense of the merchant.

By: Michael Dwyer

Michael Dwyer — Tue, 05 Sep 2006 20:49:31 +0000

"Always use AVS and CVV/CV2/CVC (Card Verification) on every transaction you process. This will at the very least guarantee that the card holder has the card, and it is being billed to an address registered to the card."

This provides no guarantee of this at all. Someone who presents a valid CVV only proves that they have a valid CVV. It suggests that they did NOT skim the card from carbons (which doesn't happen much anyway), and possibly stole the entire card.

CVV may protect you, the merchant, however. It transfers the burden of proof over the the credit card owner.

By: WebtrafficJunkie

WebtrafficJunkie — Fri, 10 Feb 2006 18:19:32 +0000

This is an awesome article. I learned a lot of great tips and pointers that will help prevent fraudulent transactions. Thanks for the information and keep up the great work!!