(MSPAlliance) - Friday, April 21, 2006 - Credit card fraud disparately affects Internet-based businesses more than traditional businesses, as there is no signature, swipe or imprint of the actual card. Businesses have typically assumed the liability in online fraud cases. Customers usually can get charges reversed easily, while businesses have to spend time and energy proving the sales legitimacy. Now businesses have started to fight back.
Many companies have implemented anti-fraud policies that include matching a credit cards billing address to the address on file at the bank, checking to see if the card has been lost or stolen or unusually used lately. Other companies have added the 3-digit security code on the back of the physical card as a requirement for doing an online transaction, raising some concerns about the security of such transactions.
Card companies are starting to offer payer-authentication services, where online businesses can ask for a password on file registered with a customer's bank. Chargebacks, however, seem to be decreasing as companies implement elaborate systems of anti-fraud protection. It is important for companies to continue to keep an eye on IT security in online transactions as a way of minimizing chargebacks there.
