Tips to Combating Cardholder Frauds
Globalization has turned the world to be a small village with many businesses transacting business activities around the world from different locations. Therefore, these a demand on businesses that transact business across the world to change the payment methods that they use. It is hard therefore to continue transacting businesses across the world using the barter trade payment methods hence the need to engage a different payment technique for businesses. Electronic payment methods are one of the results of the demand to change the traditional methods of payment. There many companies and individuals who of adapting to the electronic payment method to pay for the items that are purchased from physical or online shops. Electronic payment methods include the use of smart cards, mobile payments, credit card, debit cards, checks to name but a few.
One disadvantage of using electronic payment is that it is hard to protect your money. This is after many people of experienced credit card or debit card frauds. In many cases you can lose your card and also other personal details in the same bag meaning the person who finds the back can conduct transactions on your behalf without your knowledge. Other cases that can lead to the card from includes account takeover, skimming, checker, application frauds and so on. There are many studies that have been done to help in combating the cardholder frauds. Discussed below are some of the ways of combating cardholder fraud.
The company that issues the card as a part to play in combating the cardholder fraud. The company should come up with fraud detection and other processors to help in combating the card frauds, for instance, Andrew Phillips Cardflex processors. Also, there is fraud detection software that the company can come up with to ensure that the notice or detect any unusual behavior or pattern during the transactions which can help in raising a red flag.
The merchant, on the other hand, will also have a responsibility when it comes to combating cardholder frauds. When the merchant is transacting business with the card, it is important to request for additional information such as the pin, ZIP and also the card security code. Additionally, be sure use reliable authentication if indirectly can use PayPal, but directly you can use MiiCard.
It is upon you as a cardholder to report if the card is stolen or you lose it. Be sure also to regularly check the charges and any report of unauthorized transaction that you do not do.