Self-built anti-fraud firewall for online payment risk control

The risk of online fraud may seem small, but once it happens, it will cause you a lot of damage. For example, a credit card withdrawal is generated when payment fraud occurs, which can greatly affect your profits. The online store not only loses the proceeds of the transaction, it may also lose the items that have been mailed and may be penalized, such as facing a fine of the credit card organization and depriving the Merchant of the right to accept credit card payments. Due to the constant chargeback of payment fraud, this will make your online sales become very bad. In the most serious cases, your business account will be frozen by the bank, which will allow you to no longer accept credit card payments, the entire online sales business will be interrupted, the resulting loss can be imagined.

Credit card organizations closely monitor businesses to reduce losses and prevent fraud by reviewing the activities of their businesses and keeping a close eye on whether their credit card return or unusual transactions have continued to appear or remain high. It is important that the merchant must control the withdrawal form below 0.5% of the total credit card transaction, because once the withdrawal rate exceeds this limit, many credit card companies will start to strictly check the transaction. If a credit card company determines that a merchant's business has an excessively high rate of fraud or withdrawal, it may impose fines, restrictions and other penalties on the merchant, including depriving the merchant of the right to accept credit card payments. Each credit card company has its own way of monitoring the return rate of a merchant and enforcing that ratio below a specific limit.

For the foreign trade retail industry, the probability of suffering from credit card payment fraud is higher, especially in some virtual products trading industry, such as game gold trading, the best way to cheat in online sales is to prevent early, by setting up such a firewall to identify the risk of fraud for each order. For high-risk orders, the use of telephone verification methods can avoid most fraudulent behavior. For example, by using Google Maps, and user locations, it is commonly used to call and inquire about the location of the consumer, such as the color of your house, what is the landmark of the building, and so on.

You can reduce the risk of fraud by following the process described in this article. Please note that trading rules can affect the level of risk you are exposed to.

Verification of Orders

The verification of orders can be divided into three different states of acceptance, review and rejection. Non-suspicious orders can be accepted and executed immediately. Suspicious orders should be reviewed and you can handle suspicious orders in the following ways:

• Establish a standard for unsecured orders, such as order amounts below 50 USD, and credit card address verification and secure Code verification orders for non suspicious orders for immediate processing.

U establish a standard for suspicious orders, for example, if the order amount is more than 100 dollars and there is a mismatch between credit card address verification and one of the security Code verification, classify the order as a suspicious order and need to investigate the customer.

You immediately reject the order, for example, if the order amount is more than 200 USD, and the credit card address verification and security Code verification do not match, or this customer matches the anti-fraud database, previous bad transactions, and so on, will immediately reject this order.

Some third-party payment providers provide deferred payment guarantee services so that the merchant has time to review suspicious orders before determining whether to accept payment from consumers.

Second, according to the warning to deal with

According to its own business, set up a process to use it to deal with the warning messages issued by third-party payment providers. Typically, a third-party payment provider gives a warning message and explains why it is used to prompt the merchant to pay attention to potential risks. Business can be further processed on the basis of these warnings. However, sometimes a third-party payment provider gives only a warning and does not provide a detailed explanation. For example, because third party payment providers have their own bad customer records, they sometimes give business tips to these customers ' orders, but it is inconvenient to provide instructions. Businesses should pay attention to all the warning orders, even for those seemingly normal orders can not be taken lightly.

Iii. setting up a screening procedure

By setting up a screening program, you can identify and lock out orders that are at risk. The usual filter parameters are the customer's name, e-mail address, IP address, and so on. Some Third-party payment service providers provide risk management modules where the vendor can set the filter criteria. For example, payments from certain countries are automatically rejected. Generally in the selection process consider the following factors:

U name and contact method check

• Email and IP address checking

U Country and Region check

Iv. Choosing the right way to pay

Online marketers need to choose the right method of payment based on their own business, for example, for lower-value goods because of the low risk of fraud, so you can use a non-3D authenticated credit card channel. For high-risk goods or higher value goods, use the 3D verified credit card channel, or bank telegraphic transfer. When you are using some form of payment, be sure to understand every detail. For example, some types of credit cards do not support verification, and therefore do not support chargeback responsibility transfer, which means that businesses are always underwriting chargeback losses, rather than issuing banks. It should be noted that, on the legal side, the legislation of different countries may affect the payment methods of certain types of online business. Recently, for example, the United States has legislated to prohibit the use of credit cards for online gambling payments.

V. Consumer Registration

If your online sales business has specific risks, and your target customer base is acceptable, consider forcing a user to enroll in a new account, which excludes some of the potential risk of shopping. For example, when registering, some validation is made to determine the authenticity of the customer's identity, which is also very handy, such as using e-mail, phone or SMS for authentication. For some special industries, members can also be divided into grades, using a standard, the difference between the initial members and VIP members, after the verification and inspection period of the customer can be upgraded to VIP members, thus enjoying the exclusive services or products. If there is an accident, you can also exclude some customers from the VIP list, so as to refuse to accept these risky customer orders. In the course of consumer registration, the following terms may be used:

You need the full name and detailed address of the real names. (Facilitate background checks)

You need to register with the phone number on the yellow pages. (If not, you can ask the applicant to provide a telephone bill)

U do not accept only mobile phone number registration. (because some countries and regions provide temporary mobile phone cards)

You only offer a limited payment method at the beginning.

U limit different levels of money or customers using different payment methods.

The maximum amount you set for the customer who purchased the product for the first time.

U goods are only delivered to the customer's registered address or credit card billing addresses.

• Insist that the customer provide the receipt of the goods, or to the registered customers, the appropriate identification.

Vi. Delivery Guarantee

Some of the tools provided below will help you avoid the risk of fraud:

U limit deliveries to countries such as those with more fraud.

• Deliver to registered users.

If buyer and consignee are different, ask for Fax ID card, driving license, etc.

• Maintain trading and logistic evidence for at least 12 months.

U instructs the logistics company to sign for the owner only at the customer's doorstep.

When required to deliver to the office, provide a private signature password, the password sent to the consignee, so that only the consumer to provide a password to be signed.

U refuse to deliver to a general address such as office building, post Office, airport, railway station, industrial area, etc. If you decide to deliver, confirm the exact location and identity of the recipient.

You only provide customers who are immediately shipped to you feel very safe, such as those who have good purchase records.

VII. website Warning

The names of certain anti-fraud and safety signs are listed on the website and the alleged fraud cases will be reported to the authorities concerned or take legal action.

For online sales, the core job is to carry out risk control and counter payment fraud in the payment process. For the contents of these two parts, please refer to the "Network business Success" series of "internet marketing-Network business Success" book.