Establishing transaction controls will aid internet-based merchants lessen their risk exposure by identifying high-risk transactions. Implementing such controls will support determine when a cardholder or a transaction need to be a lot more thoroughly investigated. Identifying high-risk transactions and concentrating our fraud-prevention efforts where they are needed the most, ensures that preventing fraud is efficiently carried out and that no resources are spent on evaluating transactions that are not likely to be fraudulent. When establishing your organization’s transaction control policies and procedures, contemplate implementing the following steps:
- Implementing transaction controls and velocity limits. The initial process of setting up and implementing your organization’s transaction control really should adopt the following procedures:
- Establish your organization’s review limits on the quantity and dollar amount of transactions approved for a consumer within a specified period of time. Later you should adjust these limits to reflect the customer’s buying patterns.
- Establish review limits based on single transaction amount.
- Make sure that velocity limits are checked for numerous characteristics, such as shipping address, telephone quantity and e-mail address.
- Track and adjust velocity limits as you accumulate info on your customers’ buying patterns. The limit really should be stricter for new buyers and looser for consumers with solid purchasing and payment track record.
- Contact buyers that exceed your preset limits to decide no matter whether the activity is legitimate and ought to be approved.
- Adjust transaction controls and velocity limits based on transaction risk. Use your risk knowledge concerning selected goods, shipping locations and consumer purchasing patterns and modify your transaction controls and velocity limits to reflect it.
Implementing transaction controls will assist prevent fraud, minimize consumer disputes and reduce the quantity of chargebacks.
