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A North American Merchant is experiencing fraud with online payments

Unlike Europe, payments in North America do not have the same strict requirements for 3D secure where payments must be confirmed via text message or a bank push notification. However, US & Canadian processors can take steps to reduce fraud.

Fraud Overview

If a Merchant is experiencing fraud, it is typically where vast numbers of customer credit cards have been purchased on the dark web, and a fraudster is looking to see which ones are active. 

A common way to do this is to use an online ordering platform like LoyLap to attempt to process a tiny transaction, and if successful, they will then keep transacting on that card in progressively larger increments. 

Resolution 

If a Merchant is experiencing this issue, they will likely know once the chargebacks start happening on their account. The customers who have been fruited will attempt to get their money back, and will issue a charge back against our merchant. A fraudster will target an account with low security, so the solution is to advise Merchants is to enable more security on their ecomm acquiring account with their provider. 

Clover offers Fraud Prevention Tools to automatically void suspicious non-device payments taken online through Clover Ecommerce. Please see the following article for instructions on how to enable these tools: How to enable fraud prevention tools on Clover Ecommerce. 

Ensure AVS (Address Verification System) is enabled - This will check that the zip code supplied by the payer matches that of the card holder.

Ensure CVV is enabled - this will cross check the three digit CVV on the back of the customers card.