Opting For High Risk Merchant Account?

Any high risk merchant should bear in mind, or even become thoroughly a specialist, of all of the technical areas of credit card transactions high risk merchant account. Let’s face it, doing business online is taking risk 100 times more dangerous than doing business the brick and mortar fashion. Smart merchants would never plunge headlong into online ventures without a good, working knowledge of the loopholes of the billing process via credit cards.

High risk merchant account providers employ various tactics to mitigate the frequency of chargebacks such as restriction on the utilization of anonymous e-mail addresses, credit card validation, IP address detection, and proxy server identification.

Credit Card Validation and Other Issues

All low risk and high risk merchants are required to integrate a credit card validation system with the customer’s issuing bank.

To make it even foolproof, merchants would double check for phone number and zip code authenticity, in addition to compatibility with the customer’s billing address and issuing bank’s country. Some would even make sure they’re not doing transactions with customers that result from high risk countries.

How IP Address Detection Works

Merchants, however, will find better yet benefit in benefiting from detecting the IP addresses of their customers. Security is a tall order as it pertains to buying and selling online.

As a matter of fact, legitimate buyers would most welcome security measures such as for instance IP geolocation from high risk merchant account providers to safeguard them from credit card fraud. Scammers would hide behind anonymous e-mail addresses and proxy servers. The most that high risk merchants can perform would be to filter suspicious IP addresses. The method goes as following:

1. Merchants detect IP address using geolocation technology and IP validation technology. It may be categorized by country, zip code, area code or billing address.

2. The geolocation/IP validation technology identifies where the consumer is situated spot-on and compares where the person making order is situated and his actual billing address.

3. Merchants analyze, double check transactions, and filter legitimate and illegitimate transactions. They may also block transactions considered that you can frauds, or transactions originating from fraud-prone high risk countries.

Proxy Server Identification

IP address detection also goes turn in hand with proxy server identification. Merchants may find difficulty in detecting IP addresses if customers hide behind anonymous proxy servers.

What’s a Proxy Server?

A proxy server facilitates network performance by utilizing a caching system. The cache is just a temporary storage for data which were viewed recently (like a brain’s temporary memory). The reason is to prevent data such as webpages and images from being downloaded repeatedly, thus saving time on accessing them online. Another is to greatly help network administrators filter sites they deem other users of the network mustn’t access.

Detecting IP addresses and proxy servers may be tricky. A powerful support from a high risk merchant account providers that employs strong IP and proxy server detection technology can help your e-commerce store counteract frauds. The reason being anonymous proxy servers can not be detected consistently. With the aid of a trusted IP and proxy server detection technology, a merchant could have less time for worries and more time for finding more solutions to improve profit for his business.