Fighting Internet credit card fraud

According to Gartner (203-316-1111 / www.gartner.com) fraud rates for Internet merchants are ten times higher than for traditional brick and mortar stores. Merchants are liable for credit card charge-backs even when the bank authorized the merchants. In an effort to fight online credit card fraud, First National Merchant Solutions (888-359-5374 / www.foomp.com) launched an Internet-based payment gateway, PayFuse.

The Internet payment processing software "fuses" the merchant Web site with the payment engine, allowing merchants to obtain real-time authorizations on credit card transactions. The application helps merchants reduce fraudulent charge-backs and credit card processing fees.

PayFuse offers a fraud customization tool called FraudShield that allows merchants to control the fraud detection. The system determines whether a credit card number is valid or considered too risky, based on prior fraud attempts or charge-back records. When the customer clicks on the "Buy" button, PayFuse accepts the transaction from the storefront via a secure SSL network connection, calculates shipping charges, screens for fraudulent orders with FraudShield, authorizes the transaction in realtime and reports the transaction information to the merchant.

Within seconds, the sale is either completed or the credit card number is denied. In addition to saving merchants' money by reducing fraud, overall processing fees decrease with the all-in-one software.