3 Things You Should Be Doing to Manage Fraud

February 6, 2014

By: Magento Partners,


3 Things You Should Be Doing to Manage Fraud

Managing fraud risks is just as crucial as keeping up with current fashion trends. Here are three things you should be doing to manage fraud and protect your store, while still offering a positive checkout experience to your customers:

Monitor Fraud in Real-Time

Always start with the basics.  The tried and true fraud management tools are important to have in your arsenal and, with the proper monitoring, can prevent most online fraud before it occurs. Tools such as Address Verification, CVV/CVV2 Validation, IP Blocking, Negative Database Checking and Order Velocity Monitoring can all be implemented with parameters that best suit your business’ needs.  

Flag Potentially Fraudulent Transactions Before Shipping Goods

Crucial for etailers is the ability to provide operational staff the ability to hold, flag, review, and decline fraudulent or suspicious transactions prior to releasing the order for shipment. This can be achieved through “device intelligence” which assesses card-not-present (CNP) transactions in real-time and combines various data points and device attributes into a score which assist retailers validate their transactions and reduce fraud. For instance, a retailer would especially want to validate the authenticity of a U.S. cardholder making a transaction from a device that is identified as being in a foreign country.

Use Tokenization of Cardholder Data for Repeat Customers

For etailers, a “one-click checkout” helps increase brand loyalty, create repeat customers and create an optimum checkout experience, but it also creates the issue of how to store cardholder data in a PCI compliant manner. Using a PCI certified gateway and leveraging tokenization and storage of customer billing profiles is an ideal way to transmit and store payment data. It also helps you reduce your risk while lowering your cost.

Optimal Payments (a new Magento Silver Industry Partner) is a global provider of online payment solutions, trusted by businesses and consumers in over 200 countries to move and manage billions of dollars annually. Ecommerce merchants use NETBANX® services for omnichannel acceptance of credit and debit cards, online direct debit, eWallet, prepaid cards, and local payments around the world, and online risk and fraud management; and the NETELLER® payment service to increase margins, capture new customers and increase their lifetime value.

The official Optimal Payments NETBANX Hosted Payment Module is now available free of charge on Magento Connect and is compatible with both the Community and Enterprise editions.