Credit Card Fraud Prevention for Merchants

Recently, there was announcement about a new “disposable,” virtual credit card from Orbiscom Of course the hairs on the back of my neck stood up as they always do when I read about such things. I sent the following enquiry to the company.

Disposable credit card numbers have always been a concern to on-line
merchants because they severely limit our fraud screening ability.
We are unable to do much, if any, basic manual fraud screening by
calling the Issuer to verify account information presented to us.

Given that on-line merchants are always liable for fraudulent
transactions, we are more than a little concerned about a product
that curtails our prevention efforts. We’re fairly confident that
Orbiscom will not assume that liability in the event your disposable
numbers are used against us.

I would be interested in knowing how you would address these concerns
to our 3700 small merchants.

I actually got a response from them in a timely manner. It seems that, at least from Obiscom’s perspective, e-commerce merchants will be able to do manual fraud screening as we always have.

Thank you for your inquiry regarding Orbiscom’s online security product for credit card customers.  You have voiced concern that online merchants may experience impediments to fraud prevention by not being able to verify account information when contacting the issuer.  Orbiscom’s product allows for account information verification by the issuer when in contact with the merchant or the card holder.

The Orbiscom technology enables issuers to identify and verify account details based on the provision of a “disposable” card number. Therefore, merchants may continue to conduct manual fraud screening by calling the Issuer to verify account information presented to merchants for purchases made with disposable numbers as they would for purchases made with “real” card numbers.

Of interest to you and your members: our Issuer clients have seen an increase in their cardholders’ willingness to shop online while empowered by Orbiscom technology and most importantly for your members, a willingness to shop at smaller sites that are not as well known as the “online giants”.

I hope this clarifies the situation you described. Orbiscom’s mission is to improve the experience of the cardholder and make him/her more willing to transact online … while increasing online sales and improving the quality of the transactions that are authorized by preventing unwanted transactions from being approved.

Sincerely,

Diane Shaib
Executive VP, Orbiscom
 

Of course those of us in the trenches know that, among all the other things that can go wrong, banks don’t always cooperate on these matters. And we also know that anything dealing with credit cards is marketed to card holders, not merchants.

Still, it looks like Orbiscom has an understanding of E-commerce Merchant’s concerns and has tried to address them.

Thank you, Obiscom. And those who know me, know that I don’t hand out Kudos to processors very often

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