Any approved transaction (transaction whose approval code is not equal to the empty string) may be settled. However, an approved transaction does not guarantee that the customer who provided the billing information is truly the card holder. Preventing fraud is paramount in the payment processing industry for multiple reasons, primarily minimizing merchant exposure to chargebacks and strengthening customer confidence in electronic payments.
Depending on your style of business and potential for chargeback exposure, PayTrace encourages you to validate each transaction’s fraud indicators, in addition to approval response, to verify if a transaction is legitimate and should be settled.
AVS (Address Verification System) and CSC (Card Security Code) Responses are excellent indicators that may be used to help verify that your customer is the true card holder. Therefore, PayTrace encourages you and your application to validate the AVS and CSC Responses against the following potential responses to determine if the appropriate fraud prevention features have been met before settling a transaction.
- Full Exact Match
- Address Match Only
- Zip Match Only
- No Match
- Address Unavailable
- Non-US Issuer does not participate
- Issuer System Unavailable
- Not a Mail/Phone Order
- Service Not Supported
- No Match
- Not Processed
- Not Present
- Issuer Does Not Support CSC
*If you are processing an American Express transaction (15 digit card number starts with 37) and you provide a CSC value, the CSC Response will be empty. Note that American Express does not approve transactions whose CSC value is invalid. Visa, MasterCard, Discover, and Diner’s Club will return a CSC Response. JCB does not support CSC.
PayTrace strongly encourages you to evaluate each transaction’s AVS and CSC Responses to determine if the transaction should be settled. If you ever have a question about a transaction or are unsure if possible fraud is taking place, please contact PayTrace or your merchant service provider immediately.