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What Is A Card-Not-Present Transaction?

A card-not-present or CNP transaction is any transaction for which the physical credit card is not on location when the purchase is made. E-commerce transactions are the most prominent example of CNP purchases. Card-not-present transactions require a degree of trust on behalf of the merchant, as the cardholders’ physical absence limits the merchant’s ability to verify the identity of the individual who initiates the transaction. CNP transactions, also known [...]

By |2019-05-21T17:21:08+00:00December 13th, 2018||

What Is Affiliate Fraud?

Many merchants rely on affiliate advertising networks to direct traffic to their website. Affiliate sites, often as part of a network, post links or referrals to the merchants’ websites. The merchant pays the affiliate – typically on a pay-per-click (PPC) or commission basis. Big players in the affiliate space include: LinkShare, Google, Amazon, PeerFly, ClickBank, and many others. Affiliate fraud occurs when an affiliate site abuses the PPC or [...]

By |2019-05-21T17:21:31+00:00December 13th, 2018||

What Is An Issuing Bank?

The issuing bank is the institution that backs the cardholder’s credit card or other payment method. Typically, issuers are major commercial banks, e.g. Chase, Wells Fargo, Bank of America, etc. When the cardholder swipes, dips, or enters credit card data online, the issuing bank pays the charge and bills the cardholder. Plainly stated, this is the bank that “issues” payment. Issuing banks rely on card brands like Visa and [...]

By |2019-05-21T17:21:40+00:00December 13th, 2018||

What Is TC40 Data?

TC40 data is information reported by issuing banks each time a consumer makes a fraud claim. Issuing banks report TC40 data to the merchants’ acquiring bank, other issuing banks, and card brands like Visa and MasterCard. Each TC40 claim includes data about the merchant, the banks involved with the transaction, when and where the transaction occurred, and other details. Visa collects TC40 data under what it calls the Risk [...]

By |2019-05-21T17:21:51+00:00December 13th, 2018||

What Is Friendly Fraud?

Not all claims of fraudulent transactions or customer dissatisfaction are legitimate. In some cases, a consumer abuses the protections of the chargeback process to have his or her money returned when, in fact, the transaction was legitimate and the merchant faithfully fulfilled its duties. This is called friendly fraud. Friendly fraud can be a major burden for merchants, especially in the e-commerce space. When a chargeback is requested, the [...]

By |2019-05-21T17:22:00+00:00December 13th, 2018||