Fraud prevention

What is fraud prevention?

Online merchants use fraud prevention to shield themselves in real time from fraud and misuse of data during the ordering process. To this end, owners of online shops can use a number of credit and plausibility checks that are performed prior to the actual payment. This lets merchants weed out incorrect address information, email addresses, stolen account or credit card data, and negative credit ratings through blacklists and credit agencies. Fraud prevention modules offer additional protection by blocking IP addresses and duplicate bookings as well as through session and limit checks.

What do the terms "card present" and "card not present" mean?

A card-not-present transaction is a card payment where the cardholder does not physically present the card at the time the order is placed. This can include ordering items from a catalogue by post, fax, telephone, or the Internet. Conversely, a card-present transaction is a payment where the cardholder physically presents the card when the order is placed, such as a traditional purchase in a brick-and-mortar retail outlet.