November 21, 2022
by David Goodale
Related Topics
April 19, 2022
A chargeback is a dispute between a customer and the business. In this video we explore what a chargeback is, and some of the reasons that chargebacks occur.
April 07, 2022
If you get too many chargebacks your merchant account can be shut down. In this video we explore what you should do to keep your account in good standing if you've been targeted by fraudsters and suddenly start receiving a lot of chargebacks.
February 07, 2023
Card testing is an increasing problem for #ecommerce merchants. Fraudsters are constantly looking for ways to test cards. It's even a problem for payment processors, Visa and Mastercard. In this video David explains what card testing is, why fraudsters do it, and how to stop it, in addition to advice on how to get some of the fees reversed when it occurs.
January 20, 2022
Hello, David here at Merchant-Accounts.ca. Today I'm going to tackle a very frustrating topic. Sometimes it's infuriating. What do you do when you get a chargeback and you lose it and it's completely unfair? What's left? Stay tuned, I'm going to do my best to help in one second.
May 14, 2021
In the past the best way to manually screen suspicious orders was to call the customer on the phone and ask them questions. Now, with modern web based video technologies it's possible to validate customers in a way that was never previously possible.
March 16, 2018
Visa is addressing some of the most common chargeback related complaints from merchants. Going forward, chargebacks are a thing of the past and will now be known as disputes.
March 22, 2023
A positive AVS result is an indicator of a legitimate transaction. In this short explainer video David explains what AVS is, how it works, and things to be aware of when relying on an AVS security result for any particular order.
March 25, 2023
It can be difficult to win a chargeback dispute. David explores different ways to shift the odds into your favour.
March 29, 2023
David explains what two factor authentication is, how it works, and how it shifts chargeback risk for fraud onto the card issuer and away from the merchant.
July 21, 2023
How does Visa and MasterCard chargeback arbitration work? When a merchant has fought a chargeback and lost there is still one more chance to turn it around by taking it to the card brands for arbitration.
July 28, 2023
Merchants with businesses that are prone to disputes need to be careful to stay below the Visa and MasterCard thresholds.
January 10, 2024
There is a strong argument that 3DSecure (version 2) is the single best anti-fraud tool available to any online merchant. In this video David explains what 3DSecure is, how it works, how you set it up on your website, and different ways that it can be configured.
March 28, 2024
Pre-authorizations are one of the best tools available to prevent fraud. A pre-auth will enable you to return security results for the order, such as AVS and CVV security checks. More importantly, it gives you a chance to evaluate the order and determine if you want to accept the sale. You are fully protected because you can't get a chargeback until you capture the funds from the pre-authorization.
Always enter the customers billing address when processing credit cards
(Slightly edited from video transcript for greater readability)
Hello David here at Merchant-Accounts.ca. Today I'm going to give you a very quick tip: Always enter the customer's billing address when submitting credit card transactions. I'll explain why in one second.
The reason you should always enter the customer's full billing address, including the street address and the postal or zip code is because you statistically increase your likelihood of the transaction being approved.
Even though it's inconvenient ...
Many businesses don't type in the billing address when processing a credit card transaction. For example, if you have a virtual terminal and you're keying the customer's credit card information into your computer, it can be inconvenient to type in the customer's billing address.
Anti-fraud Algorithm
Every card issuer has an anti-fraud algorithm. Unfortunately there are fraudulant stores out there and the customer's card issuing bank is trying to prevent the fraudsters from illegitimately using a card. What we don't know is how the anti-fraud algorithm works. The reason that we can never know how it works, is if banks exposed exactly how their anti-fraud algorithms worked, they could be abused or exploited.
For example it's similar to how Google does not disclose its Search Engine Ranking algorithm. Google doesn't explain exactly how to be number one for search keywords, because if everybody knew how the algorithm worked, it would be exploited and be rendered useless.
What we do know is the card issuers are looking at many indicators and the more good information that you give to the issuer, the more likely you are to get an approval.
Declines are a problem for every merchant, particularly if you do your transactions cross-border, because cross-border transactions get a higher incidence of declines.
Summary
If you have the ability to type in a customer's credit card when you're using a virtual terminal, or if you're setting up an e-commerce website, always collect the billing address of the cardholder. It will improve your authorization rates. I hope this information was helpful and have a good day. Thanks for watching.
Related Topics
April 19, 2022
A chargeback is a dispute between a customer and the business. In this video we explore what a chargeback is, and some of the reasons that chargebacks occur.
April 07, 2022
If you get too many chargebacks your merchant account can be shut down. In this video we explore what you should do to keep your account in good standing if you've been targeted by fraudsters and suddenly start receiving a lot of chargebacks.
February 07, 2023
Card testing is an increasing problem for #ecommerce merchants. Fraudsters are constantly looking for ways to test cards. It's even a problem for payment processors, Visa and Mastercard. In this video David explains what card testing is, why fraudsters do it, and how to stop it, in addition to advice on how to get some of the fees reversed when it occurs.
January 20, 2022
Hello, David here at Merchant-Accounts.ca. Today I'm going to tackle a very frustrating topic. Sometimes it's infuriating. What do you do when you get a chargeback and you lose it and it's completely unfair? What's left? Stay tuned, I'm going to do my best to help in one second.
May 14, 2021
In the past the best way to manually screen suspicious orders was to call the customer on the phone and ask them questions. Now, with modern web based video technologies it's possible to validate customers in a way that was never previously possible.
March 16, 2018
Visa is addressing some of the most common chargeback related complaints from merchants. Going forward, chargebacks are a thing of the past and will now be known as disputes.
March 22, 2023
A positive AVS result is an indicator of a legitimate transaction. In this short explainer video David explains what AVS is, how it works, and things to be aware of when relying on an AVS security result for any particular order.
March 25, 2023
It can be difficult to win a chargeback dispute. David explores different ways to shift the odds into your favour.
March 29, 2023
David explains what two factor authentication is, how it works, and how it shifts chargeback risk for fraud onto the card issuer and away from the merchant.
July 21, 2023
How does Visa and MasterCard chargeback arbitration work? When a merchant has fought a chargeback and lost there is still one more chance to turn it around by taking it to the card brands for arbitration.
July 28, 2023
Merchants with businesses that are prone to disputes need to be careful to stay below the Visa and MasterCard thresholds.
January 10, 2024
There is a strong argument that 3DSecure (version 2) is the single best anti-fraud tool available to any online merchant. In this video David explains what 3DSecure is, how it works, how you set it up on your website, and different ways that it can be configured.
March 28, 2024
Pre-authorizations are one of the best tools available to prevent fraud. A pre-auth will enable you to return security results for the order, such as AVS and CVV security checks. More importantly, it gives you a chance to evaluate the order and determine if you want to accept the sale. You are fully protected because you can't get a chargeback until you capture the funds from the pre-authorization.
Need professional guidance?
Contact us for a free one hour consultation.
Can I Help Lower Your Processing Fees?
If you found this content helpful, will you give me the opportunity to quote on your business?
View Rates
My name is David Goodale, CEO at Merchant Accounts.ca. I launched our business in 2001 and have over 20 years of expertise in the field of online payments. If you have a payments related question or project, and especially if it relates to multi-currency or international e-commerce don't hesitate to contact me. I'm always happy to help with an honest opinion, and enjoy chatting with folks from interesting businesses.
Toll free: 888-414-7111 ext. 5
Direct: (905) 901-2254
david.goodale@merchant-accounts.ca