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Education

because the device is a tech- • Detect patterns. If you receive multiple orders with the same shipping
nological slave to the system. address but different billing address or different credit card numbers,
The only piece your merchant this should be an immediate velocity control flag. You may also see the
would really need to pay atten- same card submitted multiple times with different expiration dates be-
tion to is skimming devices if cause this is the only piece the fraudster is missing.
their device is end-to-end en-
crypted. • Use the Address Verification System (AVS) service. AVS checks whether
a cardholder's address and ZIP code match the information at the issu-
• Keep a database of attempted ing bank. This, too, should be checked. AVS can and will fail because of
fraud and use advanced tech- certain issues, one known one is address changes.
nology. I would suggest hang-
ing on to information such as Create value
customer name, shipping/bill- Have a goal for 2020? Create value for your merchants. Become sticky, share
ing addresses, IP address, and your ideas, and implement procedures and "health check-ups" to stay on top
email address if provided. If of everything for 2020. Dealing with thousands of merchants daily and being
you're using the right payment one myself, I can tell you it makes a huge difference to know there is someone
provider, this information in your corner – and not just another "credit card" company. Loyalty goes a
should now be stored for you long way these days. Keep moving forward, and best of luck. If you have any
anyway and shared across that questions or just want to chat, please reach out directly to me.
platform's community.
Cutting edge technology com- Nicholas Cucci is the co-founder and COO of Fluid Pay LLC and former director of marketing for
panies are now utilizing their NMI. Cucci is also a graduate of Benedictine University and a member of the Advisory Board and
own systems to combat fraud. Anti-Fraud Technology Committee for the Association of Certified Fraud Examiners. Fluid Pay LLC
And "communities" are grow- is the first and only 100 percent cloud-based Level 1 PCI payment gateway processing transactions
ing through which transaction anywhere in the world. Contact Nick at nick@fluidpay.com.
details can be shared. What
this means is that digital fin-
gerprints can be stored and
shared from one merchant to
another via velocity controls or
opt-in communities. Regard-
less of merchant size, velocity
controls are your friends

For example, if Merchant A
has been hit with fraud from
a specific digital fingerprint,
that information can be shared
to stop the same fraud from
harming other merchants on
the same system. Models are
exposed to new data, while
independently adapting to
new data as it comes in. This is
where more data equals more
security. This is a machine
learning algorithm.

Legacy payment platforms will
not be able to handle this type
of technology because the in-
frastructure needs to be recent.
Having large amounts of data
is only half the battle; you need
a robust system to support and
back it. Keep this in mind when
deciding where your merchant
data resides.

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