Fraud & Risk Management

When selling in a customer not present environment, a business is very often exposed to the risk of fraud. Each payment method and each channel brings its own level of risk and hence exposure. In order to address these risks, controls are required. With these controls additional costs can emerge all of which should be taken in to account when deciding your online payments strategy. Either way fraud is an issue that must be managed.

• K.Y.C. (Know your customer): Gather as much information as possible without compromising on the booking process;
• Ensure validation checks are completed on all accounts and (not just) card number data;
• Where possible consider the implementation of authentication processes such as 3D Secure (Verified by Visa and MasterCard SecureCode).
• Analyse and score all transactions for potential fraud ? looking through automated black-lists/white-lists, matching the data ? IP addresses, country of issue and exploring patterns.
• Even with processes like 3D secure in place, always seek authorisation as this confirms funds are available and where possible include the security code (usually 3 or 4 digit) and address check (where applicable).