The Security of Credit Card Transactions in Ecommerce

Ecommerce transactions or online purchases are more at risk than in-person credit card transactions. Not only are both parties at risk for fraud, but it is also more dangerous because of the financial data of both the business and the consumer. With the prevalence of identity and credit card theft, it is important to have secure policies in place. Online processing of credit cards offer two kinds of protection for ecommerce transactions: the “CVV” and “AVS” numbers. These systems protect consumers with higher levels of protection if retailers and wholesalers ask for both forms of information from buyers when accepting payments in the form of credit cards. But what exactly are CVV and AVS numbers? Take a look.

Card verification values (CVV) are located on the back of a consumer’s credit card which consists of three to four digit numbers. What makes CVV numbers secure is that they do not appear on any documents so there is no paper trail. The CVV therefore cannot be seen on credit card statements and having the CVV means having actual possession of the credit card. By asking for the CVV found on the credit card, many fraudulent ecommerce transactions can be prevented because most online credit card theft is done by someone picking up somebody else’s credit card statement trash or receipt. An incorrect CVV entered upon checkout will result in the credit card being declined, protecting the owner from fraudulent ecommerce purchases.

AVV or Address Verification Service

Improving online security is a continuous process and now with AVS or address verification service, fraudulent transactions can be further prevented. Simply put, the AVS ensures that the address entered on an ecommerce’s website order form match that of the owner’s billing address associated with the credit card. Contrary to the CVV, the AVS isn’t a requirement for ecommerce owners, which means that they can opt to ask for the AVS or not. The retailer decides whether an online shopper should enter an address associated with the credit card. Entering the address will prompt the credit card processor to send the owner an email to show whether the address matches the billing address of the card. Additionally, the credit card will not be automatically declined should the address be a mismatch, and it is up to the retailer to make a decision whether the transaction is safe or not.

Accepting credit cards as a form of payment for ecommerce transactions is risky, but is a very important feature for online businesses. Shoppers find online shopping sites a convenience because they can shop in their own homes and just use credit card transactions instead of bringing actual cash. Ecommerce owners should just make sure that they provide a safe and secure environment where online transactions can be done. Minimizing the potential for stolen credit cards used on your website will increase your consumers’ trust and encourage them to do repeat business with you.