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Fraud Prevention: Enabling Payment Gateway Detection

When you set up a new business, staying one step ahead of hackers probably wasn’t part of the business plan. But operating any kind of business now mandates cybersecurity consideration, and there are basic security measures that can help reduce credit card fraud. Here are some of the methods to reduce online fraud-related losses.

Address Verification Service

A simple address verification service (or AVS) will ask for an address and zip code associated with the billing address. After verifying the address with the one on file at a bank or institution, a payment processor will approve the transaction or ask for more verification. The AVS responds to the merchant with a code that provides them with information on whether the information provided was a full match or if another verification is necessary, such as checking a card verification code (CVC).

Card Verification Codes

Another well-known verification is the CVC, which is the code printed on the back of cards. This code can be used for verification in card not present transactions, to prove that the user has access to the card. Asking for that code is good protection against fraud, provided a business also knows not to store that data since that would provide hackers with full access to a user’s account.

Payer Authentication

Payer authentication, also called Verified by Visa or MasterCard SecureCode, is a cardholder authentication method that helps protect and secure online transactions. Cardholders create a PIN to use during checkout to confirm their identity. The use of the code as a secondary verification also provides businesses with chargeback protection.

Businesses using payment processors can also set up different checkpoints to flag transactions that have traditionally been linked with fraud.

Flag Large Transactions

Extremely large transactions are a known giveaway for fraud cases, as fraudsters attempt to make a large transaction before the card number is blocked. Allowing a large transaction to go through can be bad for your business, as you may have to bear the cost of allowing the transaction to take place, and possibly even lose your processing account. Limiting the number of large transactions by specifying a dollar amount is another way to protect your system from fraudulent transactions.


Lockouts prevent a transaction from taking place if the transaction seems suspicious. Processors spot risks such as multiple declined or failed transactions from the same IP address or suspicious activities from known high-risk countries. Limiting the number of failed transactions that can occur before a lockout can freeze suspicious transactions before they happen. Businesses can also disable transactions that fail the AVS or CVC test.

Your customers trust that you will protect their data, and responsible businesses do that through proper data management practices. Ideally, a savvy business deploys a combination of security measures, rather than just one. If the assumption is that hackers will try multiple routes in their quest for fraud, the best defense is, as they say, a good offense. Setting up a strategic, multi-pronged cyber fortress that protects consumer data while also making transactions seamless is not just a gold standard for businesses, it’s precisely what every consumer expects each time they buy anything online. Businesses that react quickly, take proactive security measures, and limit the information gathered during transactions will set themselves up for success.

PayTech Trust offers secure merchant accounts, web-based solutions, and world-class payment processing needs. With our collaborative suite of services and cutting-edge payment technology, PayTech Trust has the experience and the expertise to help your business focus on what matters: your consumers.


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