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Fraud Detection and Prevention Tools

One of the most significant concerns in the payments industry today is the increasing problem of online transaction fraud. To help merchants protect from fraud Authorize.Net offers a wide range of fraud prevention and detection tools summarized below.

Card Code Verification - Card Code (CVV2) is a three- to four-digit security code that is printed on credit cards. Authorize.Net allows each Merchant to customize their account so that the system rejects transactions where the Card Code provided by the cardholder in invalid. By using the Card Code filter Merchants are able to make a more informed decision about whether to accept a particular credit card transaction.

Address Verification System - The Address Verification System (AVS) is a verification system that compares the billing address information (Street Address and Zip Code) provided by the customer online with the billing address on file at the credit card issuing bank. Authorize.Net reports the AVS Response Code to the Merchant (match or no match) and, after screening for the AVS Response Codes that the Merchant has chosen to allow pass through the system, accepts or rejects transactions accordingly. (Note: AVS Filter does not screen international transactions. If the credit card issuing bank is of non-US origin, it is not supported by AVS).

Fraud Detection Suite - Standard verification tools such as the Address Verification System (AVS) and Card Code Verification, though essential, are limited as to the level of protection they can provide. Advanced solutions, such as the Fraud Detection Suite are needed to protect merchants from the constantly evolving problem posed by fraud. The Fraud Detection Suite includes powerful filters and tools that can prevent costly authorization and chargeback fees, and the possible loss of inventory that often result from fraudulent transactions.