FRAUD PREVENTION FOR eCHECK
Through our eCheck program we offer a fraud detection included with your gateway that can help you reduce returns.
- Identify and prevent fraud based on real-time results
- Lower overall cost of check acceptance
- Make cost-effective and timely decisions, based on live data
- Next to cash, checks are the least expensive payment instrument on the market
- Check fraud is estimated to be a $10 billion dollar a year problem in the United States
STEPS FOR FRAUD DETECTION
Federal ABA (American Bankers Association) / Routing Number Verification
- e-FAST-pay downloads a list from the Federal Reserve on a monthly basis that contains all valid ABA/Routing numbers for ACH and Check21 transactions. Clients may contact support in case a new bank has just been opened and we do not have the ABA/Routing number set up in our database.
Negative Database Verification
- e-FAST-pay has a database of every return flagged as a bad return we’ve received since 2002 (invalid account number, account closed, account holder deceased, etc).
- The database has millions of records on bad accounts.
- This service is completely free!
Early Warning Response System (UPGRADE)
- 5 major banks formed partnership in June of 2006 to share the account data within the Early Warning system (Bank of America, BB&T, JPMorgan Chase, Wachovia, Wells Fargo)
- Early Warning responses tell us that a transaction might be ACH ineligible (money market account), not to process a transaction due to a negative response, or that everything looks good and to process it! Early Warning does not guarantee a check will clear or verify funds availability.
- We are charged per check verification against Early Warning’s system and we pass those charges on with a small profit margin for utilizing the verification services.
- A 3 digit score will be provided to Landmark Clearing. The higher the number, the better probability that the account is in bad standing and a transaction will be returned.
- Another identically named system is currently in use for hospitals which scores a patient’s health – it may be beneficial to mention this to the lead in case they search the internet for this function and find hospital software.
FRAUD PREVENTION FOR CREDIT CARD
Fraud Hurts, Fight Back
According to the results of the 10th annual CyberSource Online Fraud Report, U.S. merchants lost an estimated $4 billion to fraud in 2008. Incorporating parameters to reduce the chances of fraud can help save your business.
- Reduce Costs – Minimize and prevent authorization and chargeback fees as well as possible inventory loss resulting from fraudulent transactions.
- Protect Profits – Maximize legitimate transactions, rather than refusing business due to a fear of potential fraud.
- Maximize Flexibility – Customize filter settings according to your unique business needs.
- Improve Intelligence – Restrict transaction activity from specific Internet Protocol (IP) addresses using powerful IP tools.
- Easy to Use – A setup wizard guides you through the configuration process.
Here’s how our Fraud Prevention Software works.
We install additional AVS (Address Verification Software) in your gateway to match card holder’s address with the account. When you manually enter a sale into the terminal or your PC software program it will prompt for the customer's address and zip code. You will key enter the street number (example - 123 if the address is 123 Main Street and then the five or nine digit zip code). The terminal will dial out for an approval and the zip code and numeric billing address will be compared with the physical address to which a cardholders MasterCard or Visa is registered. Once this information is verified, the merchant will receive a response to the AVS request as to the validity of the address. The AVS code will be displayed on your terminal display screen and an AVS code or message indicator will also appear on the customer's receipt if you have an electronic printer attached to your terminal.
The transaction may be approved even if the AVS information does not match! The merchant will need to check all AVS responses to find out if the address is good. THE TRANSACTION WILL NOT BE DECLINED BECAUSE THE AVS INFORMATION DOES NOT MATCH. The merchant will NOT be penalized if any of the AVS information is incorrect. The merchant does face a greater chance of charge backs if he decides to accept the sale on a questionable match.
AVS is designed to give the merchant additional information to raise the comfort level of the merchant prior to shipping product when taking credit card orders over the phone or through the mail.
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