Authorize.Net’s fraud prevention features
When it comes to processing online credit card payments, fraud is a concern – especially if you sell high-risk products or services. Authorize.Net offers a host of fraud prevention features to protect online businesses.
Established in 2002, with a focus on payment gateways for regulated products and services, we have a lot of experience in fraud detection and prevention. You can read more about Tasker Payment Gateways LLC on our About us page.
In the blog post below the table of contents, we explore the various fraud prevention measures provided by Authorize.Net, including standard features and advanced options.
Standard e-commerce fraud prevention features
One of the standard features offered by Authorize.Net is the Address Verification Service (AVS). AVS helps business owners validate the authenticity of a customer’s billing address by comparing it with the address on file with the customer’s credit card issuer.
The AVS verification process adds an essential layer of security to prevent fraudulent transactions. AVS is more effective when the websites only ship products to the billing address on record with their customer’s credit card company.
Authorize.Net also incorporates card codes, commonly called Card Verification Value (CVV), as standard security measures. CVV is a four-digit number printed on the back of a credit card or a three-digit code on the front of American Express cards. Merchants can require customers to provide these codes during the checkout process, reducing the risk of unauthorized card usage as CVV codes are never stored within any reputable, PCI-compliant (an industry data security standard) software system.
To enhance fraud prevention further, Authorize.Net offers an advanced feature called the Daily Velocity Filter. This filter allows merchants to set limits on the raw number of transactions processed within a specified time period. By monitoring and restricting excessive transaction volumes, businesses can mitigate the risk of fraudulent activities such as “card spinning.”
What is “card spinning?” Card spinning – or fraudulent card testing – as it relates to shopping carts and payment gateways is when a software system or “bot” tries random or stolen card numbers on an e-commerce site to determine which credit card numbers are valid. Because website owners are generally on the hook for transaction charges, this can be an expensive fraud event for business owners.
Limiting the number of transactions to a figure that mostly mirrors expected volume – with a cushion – can prevent large-volume card spinning while allowing for normal variances in sales volume.
Another powerful tool in Authorize.Net’s fraud prevention arsenal is IP Blocking. This feature enables businesses to block specific IP addresses or IP ranges associated with suspicious activities or known fraudulent behavior. By preventing transactions originating from these sources, merchants can effectively reduce the risk of fraudulent orders.
Authorize.Net provides customizable fraud filter actions that allow businesses to tailor their responses based on specific risk factors. Merchants can set rules and thresholds to flag transactions for further review or take action when a fraud filter is triggered. Options include declining the transaction, placing it on hold for manual review, or allowing it to proceed with additional review or authentication.
By implementing Authorize.Net’s comprehensive fraud prevention features, businesses like yours can establish a secure environment for processing online payments, safeguarding their reputation and customer trust.
If you are looking to set up a new Authorize.Net account or have questions about its fraud prevention features, the A+-rated and BBB-accredited team at Tasker Payment Gateways LLC is here to help.
Fill out the contact form below, and a dedicated, independent payment gateway expert will assist you in setting up your online payment processing.
Even if you sell a regulated item like smoking accessories, premium cigars, tactical items, FFL sales, nutritional supplements, CBD, hemp, or seeds, our complete, high-risk AuthNet gateway and merchant account recommendations will help ensure that you can accept credit cards securely and efficiently.
Through our decades of experience in high-risk payment processing, we have established strong expertise and trusted providers, allowing us to offer reliable solutions tailored to your specific product line. Don’t let payment gateway limitations hinder your business growth – contact us today and let us help you navigate the complexities of high-risk payment processing.
Don’t hesitate to contact us for assistance with your Authorize.Net account or any questions you may have. Together, we can combat fraud and ensure a secure payment processing experience for your customers – even if you sell a regulated product or service.