Yes credit card fraud can be detected and prevented, it is estimated that online merchant stores are 12 times more susceptible to card fraud, than the brick-and-mortar stores off-line, and to offset the revenue loss on account of card fraud and chargeback’s, the online merchants are left with no other choice but to add the losses to the mark-up price of products being sold online.
This has resulted in the products losing the competitive edge on pricing that had been established over the past few years, consumers may soon revert back to shopping in brick-and-mortar stores if this trend is not reversed, fraud prevention measures should therefore be the top priority of e-commerce stores to maintain the edge that prevails.
In a recent study it was found that online stores that were protected with card fraud prevention measures, were able to cut down card fraud by 90% in the very first year of putting the preventive measures in place, the security of the websites was entrusted to professional companies which had software resources and updated databases that were able to screen the genuineness of a credit card, before forwarding it to a payment gateway.
The online store is linked to the service provider’s server, after a customer enters the information that includes the billing address, the shipping address and the credit card details, it is routed to the service providers server, the authenticity of the credit card is screened and a score is generated by the service provider, based on the score it is either forwarded to the payment gateway for processing the credit card or sent back to the merchant if the transaction is flawed or is need of additional screening .
There are multiple screening processes that these companies provide, and to that extent credit card fraud has been controlled, to learn about more details on the nature of screening processes offered by the service providers click here .