Why PaySecuri

To combat the growing problem of credit card fraud and promote the use of EMV chip cards, a lot of the liability was shifted to the merchant and small business owner. The shift protects the entity with the highest level of security, while holding the entity with the less secure system responsible for the fraud.

This means that card-not-present transactions, where neither PIN code nor chip can be used have become more dangerous to merchants and small business owners. Retailers are in for $130 billion in losses from 2018 to 2023, or on average 1.8% of their revenue.

PaySecuri is a credit card verification system that works in combination with your current credit card terminal. Its online application is used to pre-verify credit cards before you complete a card-not-present transaction, such as over the phone.

Merchants who accept payment over the phone do so in order to make life easy for their customers. But taking payment over the phone means that the merchant will only verify the payment with the card number, expiration date and sometimes card verification code.

But with up to 80% of cards compromised, this is a low level of security. The big three credit card issuers all underline that the most important step to preventing card-not-present fraud is to verify the identity of the card holder. This is done, not just through getting the Card Verification Value (CVV) but also the Address Verification System (AVS).

The address verification system (AVS) compares the billing address of the customer to the address on file for the cardholder. If the two match, then it is very likely that the customer is the actual card holder. If the two do not match, then it is very likely a case of fraud as the cardholder should now this information.

AVS is important for two reasons. First, if the addresses do not match, you can prevent fraud by not accepting the payment. Secondly, having verified the address means that you have a strong case to fight a chargeback.

Chargebacks where the card has passed AVS verification are in most cases friendly fraud. This is where real customers are trying to get their money back for different reasons. It may be another family member who used the card, or that the actual cardholder wants a refund. Over 80% of consumers admit to having filled for a chargeback out of convenience.

Cardholder who attempt friendly fraud, may be honest about the reason for wanting a chargeback. But in many cases, they will simply say that they do not recognize the transaction. In these cases, credit card companies are left with finding out the details, and as they want more cardholders, the dispute often ends in their favour.

This means that if you have not used AVS in the transaction, you will be much more likely to be held liable. Opposite, if you have used AVS verification and you can prove this, your case to dispute the chargeback is much stronger.

PaySecuri uses both CVV and AVS to verify all cards. Once a card is verified, the system sends you an email as proof that both CVV and address has been verified.

Saving or printing this email out and keeping it with other information, such as the order confirmation, email exchange and proof of delivery, will mean that you have a strong case to dispute the chargeback.

With PaySecuri, you will not only prevent more card-not-present fraud, but also win more chargeback disputes. This will help you reduce losses and increase profits, so that you can grow your business.