In this fast-paced world, the sale of products and services is quick. Customers want the desired services moment after deciding to invest in them. In Card-Not-Present (CNP) credit card fraud, merchants unknowingly process fraudulent transactions as the scammer has gained confidential credit card information and is not required to present the card physically.
Consumers want instant services and products but not at the cost of a security breach. Several businesses and merchants underestimate the risk of collecting confidential credit card information over the phone. In the US, the volume of card-not-present frauds is nearly $10 Billion.
This guide will help you understand the risks involved in card-not-present credit card fraud and identify a solution that can help your business process real-time over-the-phone transactions without any risks involved.
Defining Card-Not-Present Fraud
A CNP fraud is a scam in which the customer doesn’t need to present the card physically during the transaction. Scammers use this method to carry out fraudulent transactions using credit cards that they do not possess or have altered information like account numbers or security digits.
Scammers obtain the card number, CVV, billing address, expiry details, and card holder’s name in such fraud cases. Phishing attacks, unethical employees of a company, or even hacking of payment databases of various companies and merchants helps in leaking such crucial information.
In CNP credit card fraud, the business suffers the loss. Small businesses or retail chains may suffer the highest as their initial profits are low. When a loss occurs due to fraud, merchants may be forced to cut the workforce, increase prices and reduce salaries to compensate.
In data breach cases, a business’s customer base is expected to fall due to various safety issues. The connection between the customer and the firm also gets affected when customers’ confidential information is at stake.
What is PCI Compliance and Maintaining Compliance With Over-the-Phone Transactions?
Payment Card Industry Data Security Standard (PCI-DSS) is a set of security instructions given to companies that accept, process, store or transmit credit card information to maintain a secure environment.
Managed by an independent body, PCI-SSC is formulated by significant companies like VISA, Mastercard, American Express, Discover, and JCB to ensure compliance with set norms.
Human error is a major cause in not ensuring compliance for taking customer credit card information over the phone. It can be caused by a series of events like untrained employees and behavioral issues. Other reasons include unattended systems, privacy breaches, and employees revealing sensitive information for monetary benefits.
How Does CNP Fraud Happen?
Over-the-phone credit card transactions are considered vulnerable in the entire payment chain. They pose an opportunity for the scammers to access sensitive information or, at the same time, find a target for using these cards.
The risk of fraud starts the moment you speak out your confidential card information to the customer service executive while it is entered into software that stores your credit card data. In this scenario, calls recorded for quality and training purposes pose a higher threat. This is how an entire cycle of fraudulent credit card transactions takes place.
Why use Telepay’s over-the-phone payment solution?
Ivrnet’s Telepay software is a solution that allows the consumer to enter their credit card number into the phone without having to speak it aloud to an agent. This makes the system capable of retrieving and processing sensitive credit card data over the telephone while satisfying all PCI-DSS requirements—giving clear indications to both the Customer and the Agent about the result of a transaction.
The over-the-phone security solution can be easily integrated with your existing payment and CRM/ERP system. This results in a better user experience for both the agent and the customer, as information does not have to be entered into the existing system and an external payment terminal. This prevents the customer from being redirected to unnecessary bank websites or payment gateways.
In short, Telepay is a fast, reliable and efficient solution that prevents the storage of confidential credit card data and, at the same time, helps your business perform safe and unmatched secured credit card transactions over the phone.
CNP fraud affects your profits and tarnishes your brand’s customer base and reputation. It is equally important to keep up with both as a small business. Telepay is a fast and secure solution to potentially avoid card-not-present fraud as it limits the exchange of confidential credit card information between the customer and the sales executive.
It also terminates the storage or manual entry of credit card information over the telephone. Since a major contributing factor of a data breach is solved, card-not-present fraud cases will significantly decline for your business.
A leader in payment security, Ivrnet is a Level 1 PCI DSS certified Service Provider.
Visit ivrnet.com to learn more, watch a webinar or request a demo of our PCI compliant solutions for online and over the phone credit card payments.
