Maybe thought that the implementation of EMV cards was the end of our fraudulent charge fears. Not so. While EMV cards are safer with in-person usage, they have opened up a few can of worms when it comes to CNP fraud. CNP, or card not present, fraud is still possible with EMV cards, and it is quickly becoming a hacker’s new way of getting access to one’s plastic payment card.
CNP fraud has been around ever since plastic payment cards first started being used for online purchases. It only takes a card number, a security number, and the expiration date – all three are printed on the card – to purchase something with a stolen card. While this is dangerous for customers and merchants, there are things that a merchant can do to minimize the damage for all.
First off, be sure to examine your sales. You should already do this, but a reminder helps. Another way to combat CNP fraud is to make it mandatory that a phone number and email address be used when someone places an order. If something seems “off”, give the phone number a call to verify the order. A good tip is to look over PO Box orders where the billing address is different, as well as international orders where the billing address is different.
You also need to make sure that your merchant account is up to task. These new card changes have the processing industry scrambling to keep up, and not all processors are doing a great job. If you are involved in a high risk industry, or have previous chargebacks, you should look for a high risk merchant account provider, like EMB. Not only is a high risk merchant account provider better equipped to handle any issues that may arise from CNP fraud. Like with many things in life, all high risk merchant account providers are created equal. Be sure to research your options, because a merchant account is one of the most important things you will obtain for your business.