How to protect your company against fraudulent transactions online - any tips?
My company processes 100-250 online transactions per day. Our payment processor gives us a certain element of address validation - it simply checks if the cardholder address provided in the transaction is correct for the account.
However, given the nature of our customer base (a lot of businesses and tradesmen), it's very common that even if the 'cardholder' address checks out, it won't be where the goods are being delivered, or even where the invoice is going. As such the cardholder address verification doesn't protect us against from fraud.
I've looked into other address/person checking services, and all any of them will do is tell you whether a person lives at a certain address. But consider the following situations:
- Customer wants the goods delivered to their work address, or a friend or relative
- Customer is a tradesman getting the goods delivered to the job address
- Customer works in a large company, uses a corporate card and is getting the goods and invoice sent to addresses that aren't the same office as the card is registered
How are you supposed to deal with these situations in any kind of automated or formalised way? Right now it's a person looking at it, using their judgement, researching the customer, maybe contacting them. It's a time-consuming process and we definitely flag up many legitimate orders as possibly fraudulent.
Ruling out 3d secure for the moment, I was wondering what processes or services other people are using because I'm sure it shouldn't be as hard as this?