Fraud scrubbing

PayMonex implements advanced fraud scrubbing techniques when processing every credit card transaction online. What is fraud scrubbing? Quite simply it is a way to automatically flag risky transactions for further attention or manual approval. PayMonex has automated techniques that will analyze customer information to see if it is consistent with the profile of the authorized user. If the address on the credit card different from the shipping address, or the country of the computer making the charge is different from the address on the bank account, the transaction will be flagged for further review or scrubbed all together.

Chargebacks are the biggest risk to online sellers, and hurt small businesses and auction traders the hardest. If a fraudulent transaction occurs on your web site by a customer using a stolen credit card number or fake identity, it may take time for the transaction to be discovered and reported. When that happens, the merchant who honored the sale unknowingly is held fully responsible, and the credit card company reverses the charges, canceling the sale. What happens if you have already shipped the goods? The cost of the sale, the shipping costs, and the merchandise itself are lost, a triple penalty much worse than a simple refund or lost sale.

This is why fraud scrubbing is most important for online sellers and ecommerce web sites. Fraud scrubbing techniques will analyze a customer’s IP address to match it against the address listed on the credit card. If they don’t match, the transaction is not processed or optionally, sent to a queue for further manual review. Fraud scrubbing will add an extra layer of security on top of industry standard procedures like street address verification and security code validation. We recommend fraud scrubbing to all PayMonex users, and it comes as a base option with every account at no extra charge.

Fraud scrubbing does not require that you lose business or cancel transactions all together, as you can set the level of security for your site that makes the most sense for your market. Manual review of orders lets you see why a particular transaction was scrubbed, and make attempts to contact the customer for more information. You can require identity documentation to be sent via fax, telephone confirmation, or other verification procedures that set your mind at rest before the transaction is cancelled or approved. If you have suffered chargebacks in the past, you will appreciate the additional fraud scrubbing features provided by PayMonex.

Contact our customer service department with questions or to find out more about fraud scrubbing at PayMonex, or sign up for a new account today.

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