Credit cards are all about money and money is the greatest attraction for fraudsters. There are many online shops on the Internet and the overwhelming majority of them accept online payments via credit cards and over the phone. Basically all online business owners use different online payment gateways which process payments before they are transferred to his/her merchant account. Leading payment gateway companies guarantee fraud prevention but still credit card fraud rates increase every day, as well as the number of chargebacks.

Any online business owner knows that chargebacks are one of the main ecommerce risks which result in considerable loss of money (each chargeback includes total cost of original order plus merchant-bank fee of $5 to $35 per transaction). Mainly credit card fraud takes place because merchants fail to use the Address Verification Service which verifies the billing and shipping information provided on checkout page and on your website and credit card owner’s identity. The “funniest” thing is that although leading payment gateway companies provide AVS for free, many merchants don’t bother with it. Read the rest of this entry »

Credit card…What is it? Is it a great opportunity not to bother with cash, buy whatever you want and whenever you want, make purchases online and manage your budget and expenditures closer to the payday or is it just the best road to debt life? Apparently the majority of credit card holders are much prone to accumulating debts than those who use cash and buy only the stuff they can afford or use debit cards. But does this risk to wake up one day and find yourself deep in debt is a great reason to apply for debit card instead of credit card? Obviously, this is a disputable question and both debit and credit card have their pros and cons.

For those individuals who already used credit/debit cards for a while, it won’t be that difficult to make their final choice in favor of credit or debit card, however those who just plan to apply for their first credit/debit card usually have many doubts. Here is a brief lift of things anyone should consider before choosing credit or debit card.

Interest payments

When you use your debit card, all payments you make are deducted from your saving or checking account immediately, so there is no interest. If you use your credit card, you actually borrowing money from your credit account, so banks charge certain interest for the service they provide.

Card loss or theft

If your debit card is lost or stolen, you can lose all money you have on your account in minutes. Payments made with credit card take some time to clear and you can negotiate any transactions made from your card before you receive your credit card bill. Read the rest of this entry »

What comes into your mind first when you hear something about credit card fraud? Well, today when we can hardly imagine our reality without cyberspace, going online and buying products and services, we hear a lot about online credit card fraud. Undoubtedly, this situation makes us more and more interested in quality resources which reveal us “hot secrets” of online credit card fraud prevention. However to rout our enemy wisely, we need to know it well.

Cyberspace makes us believe that credit card fraud takes place mainly when we make online purchases, though more often we use credit cards when were are logout. According to the Javelin Strategy & Research 2007 Identity Fraud Survey, 38% of credit card frauds occur from lost or stolen wallet, checks or credit cards and only 4% from online purchases. This does not mean that every credit card holder should get obsessed with thoughts of credit card fraud, though it’s a good point not to forget the above ration when protecting yourself from fraud. Read the rest of this entry »

Modern and prosperous ecommerce can be hardly imagined and, what is more, put into life, without trustworthy and reliable payment gateway service provider. Though about 50 years ago we doubted the necessity and profitability of buy-now-pay-later friend introduced by the Bank of America to the wide range of customers, today were are practically helpless without it. Sure, in real world you can always use cash and pay now, however on the web there is no such possibility and credit card turns out to be badly needed.

Obviously, online shopping has become an essential part of our lives and merchants need quick, secure, easy online payments which can fit within an existing infrastructure. PayPal, Google Checkout and Bill Me Later are one of the most popular online payment gateways processing credit card transactions and the main reason for this - less costly payment alternatives which enable merchants to reduce such expenses as logistics, shipping, fraud and risk management and provide online customers with best customer support. Read the rest of this entry »