Credit card fraud and chargebacks are fast becoming major merchant concerns, and the statistics are rising. Credit card validation and other security measures are no longer just optional - fraud is a very serious matter for business, especially engaged in e-commerce that, while flourishing, pose a growing number of challenges. sulopay

Chargebacks are a fearsome reality: they are reversed transactions due to a variety of reasons, including expired cards, double-charging, bank errors, and customer disputes. A merchant account can be lost because of too many chargebacks. But there are ways to reduce instances of chargebacks and fraud or potentially eliminate the risk, including credit card validation and these other nuggets of wisdom.

Common sense is a great friend. If the customer is present, examine the credit card closely. Check the expiration date and signature panel, and check the customer's ID if the card doesn't carry a signature. Verify the CVC2 and CVV2 verification numbers, too. The back of MasterCard and most Visa and Discover cards carry a three-digit security code, while American Express has a similar 4-digit code. You may check with your payment gateway provider for further details.

To validate credit card information is smart, but using address validation provides added benefits. The Address Verification System (AVS) matches entered address on the order form with the cardholder's address on the billing statement. And since AVS has been developed only for the United States for now, scrutinize orders from developing countries, since a large percentage of fraudulent online transactions are made of these developing foreign countries.

If you are using a third-party processor, let your customers know what name will appear on statements to eliminate confusion. This is because the company name that appears is usually that of the third-party processing company and not the company name of the site where they made the purchase. Suspicious orders should also be paid attention to; either you call or e-mail the customer to verify the order that has been placed.

Signatures are a great security detail, so if your company delivers products that use a carrier requiring signature on delivery, retain the records. You may also want to request from your customer fax copies of both sides of their credit card. This technique usually works excellently in B2B transactions.

Free email addresses, like those from Yahoo and Hotmail, are almost impossible to track, so you must be extra wary of orders placed through them.

A warning message will work on your Order page in helping ward off those who attempt making a fraudulent order. Reiterate that IP addresses are being logged, and that you can trace their identity through these IP addresses when needed.

Check BIN as well through high-quality tools like a programmable, XML Web service used by online businesses to integrate credit card and location validation into their online software applications and business processes. Through credit card validation, companies can improve business results through better insight of credit card information, reduced chargebacks, and fraud prevention.