| Fraud Management Services | | | | checkout process, the bankcard issuer confirms a |
| Identity theft costs merchants and consumers billions | | | | consumer's identity in real time. |
| of dollars each year. It is essential that businesses | | | | Transaction Scoring |
| implement the latest and best in the fraud protection | | | | This risk management solution combines predictive |
| management. Following is a list of the most widely | | | | scoring technology with access to third party |
| used fraud prevention tools. | | | | databases, rules based processing, and expert human |
| Address Verification Service | | | | insight to provide merchants with a clear |
| Address Verification Service (AVS) is a risk | | | | recommendation on whether to accept, deny or |
| management tool for merchants accepting | | | | challenge a transaction. Merchants also gain access to |
| transactions when neither the card nor the cardholder | | | | a web-based tool, providing detailed information on |
| are present, or when the card is present but its | | | | each transaction to determine its viability. |
| magnetic stripe cannot be read by a terminal at the | | | | Identity Authentication |
| point of sale. Merchants submit the AVS request | | | | This service creates a virtual 'card present' |
| through their credit card merchant processor directly to | | | | environment by performing real-time authentication of |
| the specific credit card association for address | | | | a purchaser's identity. Identity authentication detects |
| comparison. The Credit CardAssociation then verifies | | | | identification fraud by using proprietary databases, |
| the cardholder's billing address on file at the card issuer. | | | | statistical analysis and government issued identification. |
| Card Security Verification | | | | Identity authentication prevents would-be criminals from |
| Card security verification collects the 3- or 4-digit | | | | stealing a consumer's identity as well as deterring |
| numeric code on the credit card provided at the time | | | | consumers from making an authorized purchase then |
| of purchase. Credit card processing companies submit | | | | later denying the transaction. In addition, selected |
| the card verification request from the merchant | | | | services provide a guarantee against fraud losses. |
| directly to the specific credit card association. The card | | | | Age Verification |
| security value is then compared to the card issuer's | | | | Merchants can now 'card' visitors at their websites to |
| value on file. Credit card verification programs are | | | | authenticate identity and age. Age verification uses an |
| offered by the major card associations and are | | | | international database of government-issued |
| known as CVV2 (Visa), CVC2 (MasterCard), CID | | | | identifications to instantaneously verify age and identity |
| (American Express) and CID (Discover Card). | | | | online. It provides a fraud-screening tool and satisfies |
| Credit Card Authentication | | | | legal compliance where applicable. Merchants simply |
| Both Visa and MasterCard offer authentication | | | | send user information collected at the website for |
| services enabling issuers to verify a cardholder's | | | | instantaneous age or identity verification. Consumers |
| account ownership during an online purchase. With | | | | can optionally sign their name with a mouse, providing |
| Verified by Visa (VbV) and MasterCard SecureCode, | | | | another layer of protection. Less than five seconds |
| consumers are assured that using a bankcard online is | | | | after customers submit their name, ZIP code and date |
| as safe as using it at a local merchant. And merchants | | | | of birth, age verification providers determine the exact |
| are fully protected from issuer chargebacks on | | | | identity of the consumer, and bind their signature to the |
| transactions which have been fully authenticated. Since | | | | public record. |
| the transaction is authenticated by the issuing bank, the | | | | Card Brand Data Security |
| merchant will be paid. Merchants no longer need to | | | | Visa's CISP (Cardholder Information Security Program) |
| bear the risk or the cost of fraud. When a cardholder | | | | and MasterCard's SDP (Site Data Protection) |
| shops at a participating VbV or SecureCode merchant | | | | programs are security initiatives that require merchants |
| site, the checkout process remains the same until the | | | | to safeguard card data. Visa and MasterCard, along |
| "buy" button is selected. If the bankcard is registered | | | | with the other card brands, have adopted common |
| with a participating issuer, consumers will be asked for | | | | industry security requirements referred to as the |
| their VbV password or their SecureCode issuer | | | | Payment Card Industry Data Security Standards (PCI |
| specific access credentials. Through this simple | | | | DSS). |