LYCOS RETRIEVER 
Credit Card Fraud: Merchants
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FraudSciences is the leading innovator in online credit card fraud prevention. Following years of intensive research, FraudSciences has developed a technology that differentiates between real and fraudulent transactions with unprecedented accuracy. Using this groundbreaking technology, FraudSciences offers a unique transaction verification service that guarantees 100 percent protection against fraud chargebacks, allowing merchants to expand into new markets and increase their bottom line. FraudSciences customers include leading names in e-commerce such as TheWatchery.com, NetShops, Adorama Camera and Goldspeed.com, and is backed by BRM Capital and Redpoint Ventures. For more information visit http://www.fraudsciences.com/.
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Fraud prevention is a critical issue for any business that accepts credit cards. The widespread proliferation of point-of-sale processing terminals has tremendously helped the fight against fraud by obtaining immediate authorizations. Even so, your first line of defense is still your people. A terminal cannot observe a customer's behavior and check security features on the card. As a processing merchant, you must take additional steps to reduce fraud losses.
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FraudLabs is an industrial strength, secure and automated XML-based solution for validating credit card transactions online. FraudLabs web service screens and detects online credit card fraud based on transaction parameters from Internet online orders. FraudLabs is a proven solution to prevent chargebacks and to reduce fraud for online merchants. Try it for free today.
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If the fraud is detected, then the banks may repay the credit card owner (the "victim"). However, note that the amounts are less than the <$50 amount banks are obligated to repay. Many banks, particularly in Europe, seem reluctant to pay up. The victim has lost time. The transaction processing center appears to still have made money, they do not appear to suffer for processing a fraudulent transaction. The Merchant Account holder is supposed to pay a fine and refund the money.
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Company databases often unwittingly supply massive amounts of credit card information to hackers, having conveniently kept it all in one place. Often, the merchant himself will be responsible for payment of the fraud if it is found that improper steps were taken to ascertain the purchaser's identity and/or adequately protect the identity of their consumer's. The purchases most at risk for fraud are "card not present" purchases. Sites like Merchant911.org list fraud screening sites like: preCharge, MaxMind, Cardinal Commerce, FraudSmack, WhyLabs and Merchant Sense all of them offering fraud-screening services to the merchant community, specifically e-merchants who deal exclusively with "card not present" scenarios. Consumers have other resources, including identity theft protection software, many of these offered by ClearCommerce.
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If victim notices, victim can do a 'charge-back' through credit card company. However many banks only go back 60 days, so you may be out some money. Since the total for 2 months is < $50, the credit card company is not obligated to refund everything. If the victim doesn't notice, then the scam works. Eventually the Merchant Account will be closed, and a new one will have to be created under another name.
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