Online fraud is rampant in ecommerce, but taking advantage of payment gateway features can reduce your vulnerability to it.
Authorize.net is our number one recommended online processing solution for a variety of reasons, but at the top of the list are its industry-leading security techniques. Its Advanced Fraud Detection Suite (AFDS) monitors transactions according to merchant-specified filters and thresholds:
- The Daily Velocity Filter lets a merchant set a specific limit on how many transactions a payment gateway can process in one day. This protects against high-volume attacks attempted by online fraudsters.
- The Amount Filter sets a minimum and maximum spending amount for each transaction.
- The Hourly Velocity Filter limits the number of transactions made in one hour, curbing high-volume fraudulent activity.
- The Shipping-Billing Mismatch Filter flags a transaction as high risk when the billing address doesn’t match the shipping address—a possible indicator of a stolen card.
- The Transaction IP Velocity Filter links activity to IP addresses and points out unusually high activity rates from specific IPs.
- The Suspicious Transaction Filter reviews questionable orders and, if necessary, alerts Authorize.net’s Fraud Management Team to investigate transactions that meet its highly-suspicious label criteria.
- The Authorized AIM IP Addresses System allows merchants employing Advanced Integration Method (AIM) transactions to designate specific server IP addresses that are authorized to make payments.
- IP Address Blocking bars transactions from IP addresses that are on merchant blacklists of known fraudulent locations.
- The Enhanced AVS Handling Filter brings the Address Verification System (AVS) to the next level by flagging transactions where the billing address doesn’t match the billing address on file with the credit-card issuing bank, and instead of outright rejecting them, giving the merchant the option to hold them for manual review.
- The Enhanced CVV Handling Filter works in the same way as the Enhanced AVS Handling Filter, except it’s used to troubleshoot issues that come up with the card code verification, the three- or four-digit number found on the front or back of the card.
- The Shipping Address Verification Filter ensures that the shipping address for the order is a legitimate postal address.
- The IP Shipping Address Mismatch Filter allows a merchant to see if the shipping address matches the location from which the IP originated.
- The Regional IP Address Filter flags orders from specific regions or countries based on a merchant’s settings.
The merchant can set each tool and/or combinations of tools to generate certain reactions:
- Process the transaction and let the merchant know the filter(s) triggered.
- Authorize the order, but hold for review. This action gives merchants 30 days to review the transaction after it’s authorized, but before they submit it for settlement. It will appear as “Authorized/Pending.”
- Decline the order, but hold for review. These pending orders can be held for 5 days for the merchant to review manually, and possibly choose to authorize, before they expire.
- Decline the transaction.
BankCard USA has set up Authorize.net gateways for thousands of merchants since we began processing credit cards online in 1997.