Credit Card Fraud Screening


Credit card fraud screening is a service offered by various organizations to assist merchants in preventing credit card fraud. The overarching aim is to make sure each credit card transaction is legitimate.

Payment gateway providers may have screening features. If they do, you may need to make sure they are on, because they are reportedly sometimes turned off by default. If the payment gateway’s security features do not trip the transaction and a charge back is incurred, the merchant may be liable. So even if a payment gateway offers some screening features, it may be worth looking into additional credit card fraud screening services.

Credit card fraud screening includes checking a variety of items to make sure there are no red flags. These include:

  • AVS, the Address Verification System, through which the billing details for an online order are compared to those on file at the cardholder’s bank
  • CVV2, CVC2, and CID verification, in which the additional 3- or 4-digit number on the front or back of a credit card is requested from the customer
  • IP address, to verify that an order comes from the country indicated by the billing address
  • Numerous declines before a transaction is accepted, which may indicate that someone is working from a list of information, rather than from cards themselves
  • Shipping address different from billing address, although there are legitimate reasons for this, such as a student away at school or a cardholder sending a gift
  • Unusual orders, including odd order frequency (multiple orders in a short period, for example)
  • Unexpected spelling errors
  • Some of these are more easily available than others for humans to check.

Credit Card Fraud Screening Services

There are a variety of organizations offering credit card fraud screening. These include:

  • CyberSource®, offering CyberSource Decision Manager
  • MaxMind®, offering minFraud Service (standard and premium)
  • Verified by VISA®
  • MasterCard® SecureCode®
  • Experian® Payments
  • Trustwave®

Many other services are available, as well. Services are likely to be scaled to the size of the business, and may be measured in transaction queries per month and charges may be on a per query basis. So either through your payment gateway’s services configured to best advantage, or your payment gateway and additional credit card fraud screening, you should be able to reduce the number of fraudulent charges that are allowed.