Fraud 101

The first time an ecommerce merchant experiences fraud is always a rude awakening. Until that first chargeback, online retailers are usually unaware that they’re responsible when it comes to fraudulent purchase liability. With that in mind, we’ve created this educational hub. Our goal is to help you grow as a merchant, and as a business,…

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Friendly fraud: key signs and mitigating the effects

The primary goal for risk analysts is to detect and prevent fraudulent online transactions from being fulfilled. In order to do so, an analyst is attempting to discover whether the order was placed by the authorized cardholder, or a fraudster who’s using the legitimate cardholder’s information. Seems straightforward, right? For the vast majority of the…

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Billing and shipping address mismatch

A common data point that merchants should examine before accepting or declining a purchase is a billing and shipping mismatch. The reason may be simple (the order is a gift) or could point to something more (the credit card number is stolen). When an order arrives with a billing address different from the shipping address,…

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AVS: how it works and what a match means for merchants

The Address Verification Service, or AVS, is one of the most widely used fraud prevention tools in card-not-present (CNP) transactions. Originally developed for use with mail and catalog orders, AVS checks are now commonly used by e-tailers and other CNP merchants to verify order validity. An AVS check compares the billing address used in the…

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How to review an order

Any fraud analyst will be quick to note that fraud detection is as much an art as it is a science. Order review, the most basic facet of an analyst’s role, is often a multistage process, is performed in tandem with tools like machine learning algorithms, and complemented by the analyst’s own intuition, possibly the…

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Why are ecommerce merchants liable for fraud?

When a merchant starts accepting online orders, they’ve officially entered the card not present world. To a consumer, the decision between purchasing online or in-store is simply a calculation of convenience, price and availability. To a merchant however, a purchase online versus in-store are two very different scenarios, especially when it concerns liability for accepting…

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Chargeback process: an in-depth look

Navigating the chargeback process is a painful undertaking for any merchant. When a customer disputes an order, and files a chargeback, the merchant has an opportunity to contest that dispute. If a merchant wishes to dispute the chargeback, and ultimately win, they’re required to participate in a series of predefined steps created by the card…

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Chargebacks: a history

What is a chargeback? Types of chargebacks Ramifications for merchants What is a chargeback? In the U.S., a cardholder has the right to request a refund from their issuing bank for any transaction or purchase made with their credit card. Specifically, under Regulation Z within The Truth in Lending Act, which covers credit cards, and…

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