Be Cautious About These Basics Before Accepting Card-Not-Present Transactions

The problem with CNP transactions is that they offer a high possibility of fraud. A merchant who deals with CNP, order over mail or by fax is called a MOTO Merchant.

Such MOTO merchant accounts need to defend their business from illegal transactions by having the right tools in place. The risk of fraud might be high, but this arrangement is generally very convenient to both parties. The merchant gets high sales and the card holder can shop from home by just looking at a brochure.

Let’s read about some basic that the merchant needs to keep in mind, while handling such transactions.

1.    Verification Of The Billing Address

The easiest method to verify the identity of the client is by asking him to verify the billing address. If the person is a fraud he will ideally not be aware of the billing address. This method is best suited for orders by mail and on the telephone. Sometimes, even after providing an address, if a buyer does not sound authentic, check the address location on Google maps and verify if the place exists where the buyer has described it to.

2.  The Shipping and Billing Address Should Match

A merchant should be alerted the moment he notices a large order being placed by means of CNP transaction. The chances of fraud are high if the billing address and the shipping address do not match. MLM Merchant Accounts should also be wary of any high volume transactions. 

3. The Retailer Is Fully Liable

If a merchant accepts a transaction that later turns out to be done on a stolen or a pick up card, only he is liable for the consequences. The bank or the credit processing provider cannot be held responsible. He cannot hold the bank responsible for giving an approval since the card was accepted at his end.

4. Have Clarity of the PCI Compliance

All MOTO Merchants are strongly advised by the banks to check the PCI Compliance standards of the credit card service provider. If the information of the customer is leaked or compromised, the merchant will be held responsible. The merchant must do some research of his own and know what to except and compare it with what he got.

5. Use Verified By Visa And MasterCard Secure Code

VBV Verified by Visa is a special code that enables the bank to compete the two step verification of a card holder. The software in a credit card processor and a payment gateway is enabled to identify this code and link it to the card. The moment such a customer will use the card a code will be prompted to the user. Only when the cardholder will punch in this code will the transaction go through. The merchant is able to identify by looking at the transaction that the card holder is using this two step verification. Hence, the liability now shifts to the customer form the merchant.