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In the world of e-commerce businesses, the payment screening process is a vital part of ensuring financial safety and protecting against fraudulent activities. It is a process that involves the identification and analysis of payment-related data to determine whether transactions are legitimate or not. Payment screening process, which is commonly employed by online retailers, can range from simple to complicated, depending on the size and nature of the firm.
Best Practices for Payment Screening Process in E-commerce
No matter the size or nature of the business, there are certain best practices to know your transaction, every e-commerce business must follow to ensure an effective knowledge1. Implementing Fraud Detection Tools
Implementing fraud detection tools is one of the most effective strategies to avoid fraudulent transactions. These technologies can aid in the detection and blocking of any suspicious behavior, such as multiple transactions from the same IP address or a large purchase amount. E-commerce enterprises can utilize a variety of fraud detection tools on the market, including:- Address Verification System (AVS): AVS is a fraud detection tool that verifies the billing address of the payment card. The transaction is flagged as suspicious if the customer’s billing address is different from the address on file with the bank.
- Card Verification Value (CVV): CVV is a three or four-digit code printed on the back of the payment card. It is used to ensure that the customer has the correct card. If the CVV entered by the customer is inconsistent with the code on file with the bank, the transaction is flagged as suspicious.
- Velocity Checks: Velocity checks are a type of fraud detection tool that monitors the frequency and volume of transactions. If the system detects an unusual number of transactions from a single IP address or device, it can flag the transactions in the transaction reporting system as suspicious and block them.
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