Protecting your online card payment system from fraudsters this fall
If you’re in eCommerce, security should always be one of your primary concerns. Making sure your payment systems safely transmit your customers’ sensitive payment data is one of the main ways you can guarantee the success of your business for years to come. Make it your goal this fall to get your systems in tip-top shape before the holiday shopping season hits. Sales during that time of year likely make up such a substantial part of your business’ revenue for the year that it’s never too early to make sure you’re well positioned to make the biggest amount of sales that you can—efficiently and securely.
How to protect your eCommerce processing platform
Making your online shopping experience safe and seamless for your customers will help boost profits and drive loyalty this November and December, and beyond. Here are some ways that you can protect your eCommerce payment processing systems:
- SSL (Secure socket layer). An SSL creates an encrypted link between your website and your shoppers’ internet browsers, greatly reducing the chance of sensitive data being intercepted on its way to your shopping site. If you have an SSL in place, a padlock icon (or something similar) will display next to your site’s URL in the browser address bar. This icon lets shoppers know that you take data security seriously and that they can feel confident providing their payment details on your website.
- CVV verification. The CVV (or CVV2) code is the three- or four-digit code usually found on the back of a payment card on the signature panel. (Note that for American Express cards, this is typically a four-digit number printed on the front of the card.) Requiring that shoppers enter the CVV code when they pay using a credit or debit card provides an extra layer of validation that they are, in fact, an authorized user for that card. Oftentimes, fraudsters with stolen card numbers do not have the CVV code associated with the card and, therefore, won’t be able to proceed with the transaction.
- AVS (Address verification system). Similar to requiring online shoppers to enter the CVV code, mandating that shoppers enter the billing address associated with the payment card could stop many fraudsters in their tracks. With AVS, the address entered on your eCommerce website is cross-checked against the current billing address the credit card company has on file. If it’s not a match, the transaction will be denied. Again, thieves attempting to make purchases with stolen card information will often not have the correct address.
Knowing the signs of online payment fraud
Making sure that you and your staff know the signs of potential online shopping fraud will go a long way in protecting your business from fraudsters this holiday shopping season. Here are some red flags that should make you hyper vigilant about those transactions:
- International IP (internet protocol) address—particularly from a region that has been identified as a high fraud risk
- Multiple transactions on the same card over a short period of time
- Multiple transactions from the same IP address over a short period of time
While the above situations may signal payment fraud, it is important to carefully assess the transaction and take potential fraud on a case-by-case basis. Of course, someone placing an order from an international location does not, in and of itself, definitively mean fraud.
Retailers that have online payments processing that isn’t secure or is cumbersome for shoppers to use risk losing valuable business this fall—not to mention into the holiday shopping season.