Each year, airlines, internet and mail order companies, and telemarketers conduct billions in business through “card-not-present” transactions with customers they never see. The internet, in particular, offers new opportunities for retailers to sell goods and services. But electronic commerce also brings new kinds of payment card fraud. MasterCard card verification and security programmes enable cardholders to feel more confident about conducting online, mail order and telephone transactions.

1. Avoiding Fraud on “Card-Not-Present” Transactions

Fraud is a particular concern for mail order, telephone order and internet businesses, since transactions are card-not-present. Businesses can minimise the occurrence of fraudulent transactions through a number of protective measures.

• Call the Voice Authorisation Centre to verify the cardholder’s telephone number.
• Prior to shipping merchandise, call the phone number the customer provided and verify the transaction information. Fraudsters are often unable to verify the information they originally provided, since they order at random and do not keep a record of what they requested.
• Be sensitive to priority shipments for fraud-prone merchandise, which may indicate a fraudulent transaction.
• Be wary of orders from past customers that differ from their usual purchasing patterns.

2. Use the Card Validation Code 2 programme.

To address the unique concerns of direct marketers, MasterCard recommends using the Card Validation Code 2 (CVC 2). This highly effective cardholder verification programme can make transactions safer and more profitable.

The CVC 2 is a three-digit code indent printed on the signature panel of MasterCard cards. This added security measure enables a retailer to verify that the buyer has the actual card in hand during a card-not-present transaction. MasterCard strongly recommends that businesses ask each consumer for their Card Validation Code when conducting a transaction on the internet or by phone. Like magnetic stripe data, merchants should never store CVC 2 codes.

For more information about CVC 2, please contact your bank or Payment Services Provider.

3. Protect Online Transactions with MasterCard SecureCode®.

MasterCard SecureCode makes online shopping more secure for retailers and their customers by providing cardholders with a unique personal code for their transactions. In addition to helping prevent chargebacks and fraud, MasterCard SecureCode can give customers greater peace of mind and allow electronic retailers to ship orders with confidence. It’s a simple, cost-effective way to encourage e-commerce while reducing risk. Learn More About MasterCard SecureCode

4. Protect Data with MasterCard Site Data Protection.

You can help protect your business and your customers against hackers and other security breaches by participating in the MasterCard Site Data Protection Programme. This programme provides the requirements, guidelines and tools that improve your security posture by identifying vulnerabilities in security processes, procedures, and website configurations. Learn More About Site Data Protection