| rchants can benefit from using a number of | | | | and AVS (available only for U.K. addresses outside |
| fraud-screening services that are available to help | | | | of the U.S.) |
| them verify the validity of a payment card used | | | | Require that billing addresses match shipping |
| in a card-not-present transaction. Fraud prevention | | | | addresses for high-risk transactions. Such |
| tools can be developed internally or obtained from | | | | transactions can include big-ticket transactions and |
| third-party vendors. When implementing fraud | | | | transactions for specific merchandise types. |
| screening procedures within your organization, you | | | | Screen for high-risk shipping addresses. There are |
| should consider the following: | | | | third-party databases of high-risk shipping |
| - Implement mechanisms to identify high-risk | | | | addresses which you can use to compare to |
| transactions. Once you identify a high-risk | | | | shipping addresses provided by your customers. |
| transaction, you should: | | | | Special attention should be placed on P.O. boxes, |
| - Suspend processing a transaction with high-risk | | | | prisons, hospitals and addresses with documented |
| attributes. High-risk transaction attributes can | | | | fraudulent activity. |
| include: match data stored in internal negative files; | | | | Treat international transactions as high-risk. You |
| exceeded velocity limits and controls; an Address | | | | should require greater scrutiny and verification for |
| Verification Service (AVS) mismatch; a high-risk | | | | international transactions. You should consider |
| profile match. | | | | tighter transaction controls and velocity limits on |
| - Develop effective review procedures to | | | | international orders. Also you should consider using |
| investigate high-risk transactions. The goal should | | | | third-party scoring services for non-U.S. |
| be to reduce the percentage of fraudulent | | | | transactions. Your payment processing provider |
| transactions while minimizing the impact of this | | | | should be able to suggest such services to you. |
| effort on legitimate transactions. | | | | The type of products or services purchased, the |
| Identify international IP addresses as high-risk. | | | | transaction amount and the country where the |
| Historical data show that international IP addresses | | | | card was issued can further influence your risk |
| have a substantially higher fraud rate than | | | | assessment. Prior to shipping goods in a high-risk |
| domestic addresses, particularly when merchants | | | | transaction, you should contact the card issuer to |
| require a U.S. billing address. Be sure to check | | | | verify the cardholder information. |
| international transactions for a positive match on | | | | Previous cardholder purchases should factor |
| their Card Security Codes (CVV2, CVC2 and CID) | | | | positively in your fraud assessment procedures. |