One of the trying aspects of any business today is to prevent credit card fraud transactions. With so many types of credit cards that are being used in almost all business transactions today, it is quite challenging to identify frauds; much less to prevent them. A lot of technology is used on the Internet platform which opens the floodgates to potential fraud transactions with inadequate security checks on the mode of payment made for any business transaction.
This is where you require the use of bank identification or BIN databases to reduce chargebacks.
Chargebacks are the last type of business activity a merchant would want to deal with; it means that the transaction performed is invalid due to some reason and there is no money transferred. It is a fall-through deal. It is a big disappointment to the merchant who experiences a lot of chargebacks as they are time consuming and tedious, as seen from highrisk.solutions.
One of the best ways to reduce chargebacks today is through the use of bank identification numbers (BIN) which confirm the authenticity of the card used in a payment transaction. The credit card’s first six digits help to verify the necessary information of the card and cardholder as well as the issuing bank as a safety precaution to prevent fraud transaction.
Hence, the BIN system is able to match and confirm the cardholder with the transactions before approvals are given. An up-to-date and accurate BIN database functions effectively to reduce chargebacks as authentic customers can be identified and fraudsters can be rejected by the system.
In order to be effective to reduce chargebacks, a BIN database must be accurate in its store of data all the time. Although it may be impossible to secure 100% accuracy, as high a percentage as possible is preferred to assure merchants of getting their money from all their business transactions.
An effective BIN database must be regularly updated with adequate and relevant information for confirmation and verification purposes. Incomplete details will not help to reduce chargebacks as merchants are not able to confirm the authenticity of the card purchase. It is a risk they would have to take on unverifiable card transactions.
A BIN database must not only be professional but also easy to use so that the merchant can understand the system and its mode of operation to speed up any verification processes as time is of great essence in any business transactions. Moreover, the BIN system should have the coveted ISO certification to assure the merchants of its quality and accuracy as well as its proper handling of procedures to ensure security in its database.
When a merchant refuses to refund customers request, he can only call the credit card company and demand the charge with merchant chargeback.
Even tough, a merchant wins the chargeback dispute, the processing statements from previous months will still reflect the chargeback. This is why most costumers directly call credit card companies as there’s nothing much a merchant can do about it.