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Tips to Combating Cardholder Frauds

Globalization has turned the world to be a small village with many businesses transacting business activities around the world from different locations. Therefore, these a demand on businesses that transact business across the world to change the payment methods that they use.It is no longer the generation that used the barter trade as a method of payment or the use of cash because it is hard to transact cash across the world. To change the traditional methods of payment transactions, electronic payment methods were found to be the best. The use of electronic payment method has become very useful even to individuals after the of purchased various items from online and physical shops because they can pay. Examples of electronic payments include the use of credit card, debit card, checks, money transfers, smart cards, mobile payments to name but a few.

One disadvantage of using electronic payment is that it is hard to protect your money. There are many cases that prove the insecurity of having electronic money as many cases report of credit card or debit card frauds. The fraud could happen for instance when your card is stolen, and especially if it was with other details pertaining the account meaning that you can lose all the money in the account. Other cases that can lead to the card from includes account takeover, skimming, checker, application frauds and so on. There are many studies that have been done to help in combating the cardholder frauds. Below are some tips on combating cardholder frauds.

The company that issues the card as a part to play in combating the cardholder fraud. The company issuing the card can take a step of ensuring that they come up with processors and other mechanisms that can detect the card frauds for example, the Andrew Phillips Cardflex processors. Also, there is fraud detection software that the company can come up with to ensure that the notice or detect any unusual behavior or pattern during the transactions which can help in raising a red flag.

The merchant, on the other hand, will also have a responsibility when it comes to combating cardholder frauds. One of the way as a merchant you can combat the cardholder fraud is by requesting for additional information such as the ZIP, pin and the card security code.Additionally, be sure use reliable authentication if indirectly can use PayPal, but directly you can use MiiCard.

As the cardholder, be sure to report when you lose the card, or it is stolen. As a cardholder, it is important also that you regularly check the charges and any notification of the unapproved transaction.

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