CARD VERIFICATION VALUE 2 code (CVV2) is a free fraud control tool. In fact, in most cases, it is the ONLY fraud control tool which does not carry a per use add fee.
Remember that CVV2 CANNOT be stored!
CVV2 code is 3 digit code on back of Visa / MasterCard / Discover cards and 4 digit code on front of American Express cards (http://en.wikipedia.org/wiki/CVV2)
Showing posts with label fees. Show all posts
Showing posts with label fees. Show all posts
Add fees for AVS
AVS fields are basic fraud control tools and help lower CNP transaction processing fees (see CNP transaction fee and AVS).
But keep in mind that there is an add cost associated with use of AVS => use these fields wisely.
If your transaction amounts are low enough, use of AVS can in fact result in much higher fees.
Estimate add cost associated with use of AVS vs. interchange fee savings with use of AVS.
Refer to your merchant account pricing or contact your merchant service provider to confirm your specific AVS add fee and your fee schedule to define your optimal processing logic.
But keep in mind that there is an add cost associated with use of AVS => use these fields wisely.
If your transaction amounts are low enough, use of AVS can in fact result in much higher fees.
Estimate add cost associated with use of AVS vs. interchange fee savings with use of AVS.
Refer to your merchant account pricing or contact your merchant service provider to confirm your specific AVS add fee and your fee schedule to define your optimal processing logic.
CNP transaction fees and AVS
Various criteriae affects processing fees for CNP (Card Not Present) transactions.
Key one is AVS (Address Verification Service) Zip code. There was several AVS fields. From a fee standpoint, only Zip code matters. For lower fees a ZIP code must be included in the authorization request. Interestingly, ZIP code must be present but it does not need to match ZIP code on card holder's account.
Refer to your merchant account pricing or contact your merchant service provider to confirm your specific fee schedule.
Key one is AVS (Address Verification Service) Zip code. There was several AVS fields. From a fee standpoint, only Zip code matters. For lower fees a ZIP code must be included in the authorization request. Interestingly, ZIP code must be present but it does not need to match ZIP code on card holder's account.
Refer to your merchant account pricing or contact your merchant service provider to confirm your specific fee schedule.
Over protecting yourself from fraud?
Card Not Present (CNP) transactions carry lots of risks associated with fraud. Today, merchants have a broad range of fraud control functionalities and solutions available to them.
But merchants must find the right balance between business needs and protection.
Using too much fraud control can negatively impact revenue by reducing potential sales and adding up cost:
- Protecting yourself from fraud means that you will reject good payments. This is life. However, ensure that your fraud control logic does not result in too high a rate of rejection of good payments.
- Fraud control functionalities and solutions can add up to significant cost. Make sure your business really requires the fraud control level you are paying for.
Many solution providers make it very easy to add / play with fraud control functionalities and solutions. In turn, they make it very easy to overdo it and to quickly increase cost.
CARD VERIFICATION VALUE code is free fraud control tool.
But merchants must find the right balance between business needs and protection.
Using too much fraud control can negatively impact revenue by reducing potential sales and adding up cost:
- Protecting yourself from fraud means that you will reject good payments. This is life. However, ensure that your fraud control logic does not result in too high a rate of rejection of good payments.
- Fraud control functionalities and solutions can add up to significant cost. Make sure your business really requires the fraud control level you are paying for.
Many solution providers make it very easy to add / play with fraud control functionalities and solutions. In turn, they make it very easy to overdo it and to quickly increase cost.
CARD VERIFICATION VALUE code is free fraud control tool.
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