Moneris

Part 1

Understanding how ecommerce transactions are conducted

In general, ecommerce transactions occur as follows:

The customer visits your ecommerce website and browses the items you are selling.
The customer selects one or more items they wish to purchase, selects variants (e.g. size, colors, etc.), then proceeds to check out.
At checkout, the customer enters their identifying information, shipping address, and payment information.
Moneris Checkout processes the payment and returns an approval or decline from the issuing bank.
While Moneris Checkout is processing the payment, the suite of fraud tools are conducting checks to ensure the transaction is safe to process.
If the transaction is approved, review the transaction with your fraud tools before shipping out the product.

Part 2

Understanding chargebacks

A chargeback is an adjustment to a customer's account, resulting from previous sales transaction being disputed by the issuing bank. As per your Merchant Agreement with Moneris, you are liable for all chargebacks, therefore it is your responsibility, as well as being in your best interest, to try to prevent them.

There are four categories of chargebacks:

Fraud
Authorization
Processing Errors
Consumer Disputes

Please see the Merchant Operating Manual or the Card Brand Rules and Regulations for more information about chargebacks.

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Part 3

Introducing how Moneris fraud tools secure transactions and reduce risk

Moneris Online comes bundled with some of our most advanced fraud prevention tools, perfect for businesses of all sizes. This suite of fraud detection and protection tools are working behind the scenes to protect and secure ecommerce transactions that are conducted from your Bookmark ecommerce website.

Here’s what is included:

3-D Secure 2.0 – 3-D Secure 2.0 is designed to make e-commerce transactions more secure. It ensures the transaction is originated by the actual owner of the account. By implementing 3-D Secure 2.0, merchants reduce fraud exposure, fraud disputes, and save on operational costs.
Moneris Kount^® Essential – Protect your business against Card Not Present transaction fraud in real time so you can confidently meet your customers wherever they are. Reduce fraud exposure, minimize manual reviews, and increase order acceptance using Kount Essential. Its features include real-time responses for a friction-free checkout, risk scoring based on billions of purchase attempts, and customizable rules based on business needs.
CVV2 – CVV2 is the three or four-digit code that is printed on the back of the card. Merchants processing card-not- present transactions use CVV 2 to verify the customer has a legitimate card at the time of the transaction. CVV2 compliments the other merchant fraud detection tools, and helps to minimize fraud.
AVS – (Address Verification Service) allows merchants processing card-not-present transactions to check a customer’s billing address with the card issuer. AVS complements other merchant fraud detection tools and helps to minimize fraud.

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Part 4

Understanding Card Testing

Card Testing is a type of fraudulent activity where someone tries to determine if stolen card information can be used to make purchases.

Card Testing occurs when a fraudster uses a merchant’s website to “test” stolen credit card information to determine if the card is valid. These tests are usually transactions of a very low dollar value.

What you can do to identify Card Testing:

Monitor every transaction.
Monitor number of transactions for higher than usual activity.
Be careful what you display on your checkout page. Avoid indicating why transactions are declined.
Look into high numbers of failed attempts to block a transaction from going through or stop fulfillment of the order.

If you suspect card testing has been occurring on your site, please review the lesson "Void ecommerce transactions" under Use Merchant Resource Center to void the suspected testing transactions.

If you have any questions or feel you have been a target of card testing please contact us through moneris.com/support.

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Part 5

Understanding ecommerce fraud risks

What is ecommerce fraud?

Credit card fraud continues to be a significant issue for businesses and consumers, and it hurts us all. Moneris has taken a proactive approach to helping merchants reduce fraud by creating the Moneris "Every Card. Every Time" fraud prevention program to help educate front-line staff about fraud.

There is anonymity buying through the mail, over the telephone, or online, but here are the steps you can take to help stop credit card fraud.

Watch for:

Larger than normal purchases
Orders of "big ticket" items for resale
Orders shipped Rush or Overnight for quick sale
Orders shipped to a location different from the billing address
Multiple different cards declined before transaction approves
Transactions on similar account numbers
Orders shipped to a single address, but made from multiple cards
Card testing

Please see A Guide to Preventing Credit Card Fraud for further information.

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Part 6

How to respond to chargebacks and sales draft requests

When a chargeback occurs, Moneris will email you a Sales Draft Request or a Chargeback Notification, asking you for a copy of the receipt or other required documentation as proof that the cardholder authorized the sale. We may also ask for other supporting documents related to the sale.

When you receive these notices, please respond to them within the timeframe indicated on the notice. There is no need to fax or mail anything. Simply log in to your Merchant Direct account via moneris.com/merchantdirect and access Chargeback Reports to view and respond to your disputes.

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Part 7

Tips for avoiding major chargeback scenarios

Non-receipt of merchandise

Deliver products or services at the time of transaction, or the agreed-upon date and location.
For merchandise that is shipped, ensure the cardholder signs for the items when the shipment is received.
In the event of shipping or production delays, reach out to your customers to advise them, and to provide a new estimated time of delivery.

Quality of merchandise or service

The description of goods or services should be accurate. If possible, obtain certifications to guarantee merchandise authenticity as well.
For online transactions, note that returns, refunds, or cancellation policies must be either in a sequence of pages before the final checkout, or before an acknowledgement check box near to the ‘Submit’ button on the checkout page.
Provide a clear method for customers (Phone, Email, or both) to contact your business. Ensure that communication from customers is reviewed and responded to in a timely manner.
If a customer disputes a transaction, try to resolve the issue directly and document your efforts.

Understand the fraud risks of card-not present transactions

Manually entering a card number from an email, telephone call, or mail order (MOTO) is always a risk. When you manually key in a card number, you are accepting all the liability for the transaction and any fraud loss that may occur. If you are suspicious of any transaction, do not proceed.
Remember that an authorization or approved message does not mean that the actual cardholder is making the purchase, or that a legitimate card is involved. An authorization only means that credit is available, and that the card is not currently blocked.
For card-not-present transactions, consider implementing an authentication or fraud prevention solution designed to make these transactions more secure in real time.

Proper authorization

Ensure you obtain proper authorization on the date of purchase, or the shipment date.
If you receive a ‘Declined’ response, do not continue to attempt authorization with the same card. Ask the cardholder for another method of payment.

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You did it!

Lesson Complete

Moneris Online Fraud Tools

Next, let’s learn about how to use the Merchant Resource Center to manage Moneris Online.

Use Merchant Resource Center