Security Features For Credit Card Merchants

With the increasing risk of credit card fraud

, credit card scams and identity theft, the need for a secure credit card processing system is critical to keeping both consumers and businesses safe. Credit card fraud can result in a nightmare of debt for consumers and hefty fines for businesses, but when merchants put the appropriate security features in place to protect their customers' credit card information, the risk of fraud is greatly reduced. Below, learn about effective security features that credit card merchants should know about, including Address Verification Systems (AVS), Card Verification Values and tokenization.

Address Verification System (AVS):

An address verification system, or AVS, allows merchants to accept credit cards for business while reducing fraud, avoiding chargebacks and saving money in the process. AVS requests are made through the normal authorization process, most often for card-not-present transactions. Customers place the order and, in addition to confirming the usual order information, must also include their billing address and ZIP code. Customers who do not enter the correct ZIP code or billing address may be using a stolen or counterfeit credit card for fraudulent purposes. If a "No Match" result is processed through the system, merchants can then take the appropriate steps to ensure the card is legitimate.

Card Verification Values (CVV or CV2):

Credit Card Verification Values are also known as Card Security Codes, Card Verification Value Codes and Card Code Verification. Whichever name you are most familiar with, the main concept is the same for each: A CVV is a three- or four-digit value that helps verify that the customer is the true credit card holder, often used during card-not-present transactions. The customer places the order and is then requested to provide standard information, such as name and credit card number, as well as the CVV. The CVV is then checked for validity and either authorized or denied.

Tokenization:

Tokenization is an advanced security feature that reduces business liability for merchants while keeping consumers' credit card information safe. The process takes place during a normal transaction, during which the customer's credit card data is replaced with a "token," or coded reference pointer, which is then transmitted and stored throughout the credit card payment process. The idea behind tokenization is that by removing the credit card information completely out of the process, credit card thieves and hackers can access only a useless token should a security breach take place.

With the proper security features in place, credit card merchants can reduce the risk of credit card fraud and keep their customers, as well as their business, safe and secure.

by: Julie Henaghan

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