Martin Pelmore, Credit Card Processing Security Concerns

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Martin Pelmore, Credit Card Processing Security Concerns


As an online merchant accepting credit card payments, you have numerous
security issues that you must be aware of for the safety of your business
and your consumers. At this time, there are two main aspects of credit card
security for credit card processing, including ?AVS? and ?CVV?. Both allow
credit card transactions to be completed anonymously over the internet, and
any merchant accepting credit cards online should require both forms of
information of your customers.

Address Verification Service

The ?AVS?, or address verification service, is used to determine that the
address provided by a customer matches the address associated with a credit
card account. This helps generate confidence that the person who is entering
the credit card details is the person who owns it. While the AVS is not
required to process credit card transactions, when it is provided the
transaction processor will send a response back with details of how much of
the address provided matches the address on the credit card.

A credit card will not be denied if the address is entered wrong, it is up
to the merchant to decide what to do if the address only matches partially
or not at all. You can deny the sale, or require the buyer submit additional
information, or give them the opportunity to correct the address
information, before processing the transaction.

Card Verification Value

The ?CVV?, or card verification value, sometimes referred to as the CVV-2 is
a three to four digit number found on the back of American Express,
MasterCard and Visa cards. It?s on the card but not on any statements, so
that if an individual has found a credit card statement in the trash, they
aren?t able to complete a sale that requires the CVV code for verification
purposes. When a customer is able to enter the CVV code, it?s a strong
indication that the customer has the credit card in hand, which increases
the potential of the card belonging to the person who is attempting to use
it to make a purchase online.

Most credit card fraud online occurs when a thief has found a discarded
receipt or a thrown out credit card statement, but by requiring the CVV
code, the merchant can eliminate that type of fraud.

If a CVV number is entered and is incorrect, the transaction will be
declined by the credit card issuer.

Providing Consumers with Top Security

If you are going to accept credit cards online for payment for products or
services offered through your website, it?s imperative that you provide your
customers with a guarantee that you?re protecting their credit card
information.

Credit card processing typically requires that the customer?s information is
transferred about four times, which means there are four instances when
someone could gain access to the cardholder?s details. When a customer first
sends the credit card information to you via your checkout or web based
form. You are solely responsible for security as the internet merchant, at
this stage in the credit card transaction process. Having a secure server
and a valid security certificate with the https protocol will protect and
encrypt private information you receive from customers.

You will want to be sure that the credit card transaction processing
software you use for your business is secure by using a reputable processing
company. As customer information is moved in and out of a database through
the transaction process, the security must be top of the line- and this is
ensured by choosing a solid company that offers encrypted software for this
part of the process.

Finally, when customer credit card information is viewed or handled by you
or your staff, it?s important that you ensure security at this stage as
well.

 This article has been provided courtesy of Creditor Web,