Check Resolution Services Inc

Check Resolution Services Inc

Blog post   •   Nov 08, 2010 09:33 EST

About Check Resolution Services

The cost of card fraud in 2006 were 7 cents per 100 dollars worth of transactions (7 basis points). Due to the high volume of transactions this translates to billions of dollars. In 2006, fraud in the United Kingdom alone was estimated at £535 million, or US$750–830 million at prevailing 2006 exchange rates

Card not present transaction

The mail and the Internet are major routes for fraud against merchants who sell and ship products, and impacts legitimate mail-order and Internet merchants. If the card is not physically present (called CNP, card not present) the merchant must rely on the holder (or someone purporting to be so) presenting the information indirectly, whether by mail, telephone or over the Internet. While there are safeguards to this, it is still more risky than presenting in person, and indeed card issuers tend to charge a greater transaction rate for CNP, because of the greater risk.

It is difficult for a merchant to verify that the actual cardholder is indeed authorising the purchase. Shipping companies can guarantee delivery to a location, but they are not required to check identification and they are usually not involved in processing payments for the merchandise. A common recent preventive measure for merchants is to allow shipment only to an address approved by the cardholder, and merchant banking systems offer simple methods of verifying this information. Before this and similar countermeasures were introduced, mail order carding was rampant as early as 1992[6]. A carder would obtain the credit card information for a local resident and then intercept delivery of the illegitimately purchased merchandise at the shipping address, often by staking out the porch of the residence.

Small transactions generally undergo less scrutiny, and are less likely to be investigated by either the card issuer or the merchant. CNP merchants must take extra precaution against fraud exposure and associated losses, and they pay higher rates for the privilege of accepting cards. Fraudsters bet on the fact that many fraud prevention features are not used for small transactions.

Merchant associations have developed some prevention measures, such as single use card numbers, but these have not met with much success. Customers expect to be able to use their credit card without any hassles, and have little incentive to pursue additional security due to laws limiting customer liability in the event of fraud. Merchants can implement these prevention measures but risk losing business if the customer chooses not to use the measures.

Check Resolution Services Contact :Identity theft

Identity theft can be divided into two broad categories: Application fraud and account takeover.

Application fraud

Application fraud happens when a criminal uses stolen or fake documents to open an account in someone else's name. Criminals may try to steal documents such as utility bills and bank statements to build up useful personal information. Or they may create counterfeit documents.

Account takeover

Account takeover happens when a criminal tries to take over another person's account, first by gathering information about the intended victim, then contacting their card issuer masquerading as the genuine cardholder, and asking for mail to be redirected to a new address. The criminal then reports the card lost and asks for a replacement to be sent.

Some merchants added a new practice to protect their consumers and their own reputation, where they ask the buyer to send a photocopy of the physical card and statement to ensure the legitimate usage of a card.

About Check Resolution Services

Merchants

The merchant loses the goods or services sold, the payment, the fees for processing the payment, any currency conversion commissions, and the amount of the chargeback penalty. For obvious reasons, many merchants take steps to avoid chargebacks—such as not accepting suspicious transactions. This may spawn collateral damage, where the merchant additionally loses legitimate sales by incorrectly blocking legitimate transactions.

BIN attack

Credit cards are produced in BIN ranges. Where an issuer does not use random generation of the card number, it is possible for an attacker to obtain one good card number and generate valid card numbers by changing the last four numbers using a generator. The expiry date of these cards would most likely be the same as the good card.

Check Resolution Services Improve : Merchants

The merchant bears the loss. The merchant loses the value of any goods or services sold, and any associated fees. These losses incline merchants to be cautious and often they ban legitimate transactions and lose potential revenues. Online merchants can choose to apply for additional services that credit card companies offer, such as Verified by Visa and MasterCard SecureCode. However, these are fiddly for consumers so there is a trade-off of making a sale easy and making it secure.

The liability for fraud lies on the merchant, not the credit card company. The merchant must pay the full cost of the fraud plus a chargeback fee (unless the merchant's chargeback insurance covers it).

High-risk industries such as online shops anticipate losses and spread them over the prices that are paid by honest buyers. The FBI's Financial Report to the Public in 2007 estimated such losses to be $52.6 billion that are borne by 9.91 million US consumers. Recently several attempts have been made to amend the legislation to protect cardholders and merchants from fraud, but credit card companies are heavily resistant to such initiatives.

Check Resolution Services Card Fraudulent Charge-Back schemes

There is a class of email spam (usually sent to commercial / corporate email addresses) where the spammer makes an offer to purchase goods (usually not specifically identified) from a vendor. In the email, the spammer makes it clear that they intend to pay for the goods using a credit card. The spammer provides the shipping address for the goods, and requests a product and price-list from the vendor in the initial email. It has been speculated that this is some form of charge-back scheme, whereby the spammer is using a valid credit card but intends to request a charge-back to reverse the charge while at the same time retaining the goods that were shipped to them.

Check Resolution Services Contact Merchants

The merchant loses the goods or services sold, the payment, the fees for processing the payment, any currency conversion commissions, and the amount of the chargeback penalty. For obvious reasons, many merchants take steps to avoid chargebacks—such as not accepting suspicious transactions. This may spawn collateral damage, where the merchant additionally loses legitimate sales by incorrectly blocking legitimate transactions.

More results:
Check Resolution Services Inc. Check Resolution Services Owner Check Resolution Services Buisness