Credit card processor Paymentech will use the DMA fall show as a platform to highlight stories of direct marketers who have used its tools and services to detect internal fraud.
Since catalogers and Web marketers rely on credit card information given over the telephone or via an online order form, verification that the cardholder has authorized the payment is crucial to prevent fraud and limit monetary loss.
Paymentech, Dallas, offers a number of tools to reduce the risk of fraud both inside an enterprise and out. This year alone the company has helped uncover 13 cases of internal fraud.
Paymentech's Address Verification Service, designed specifically for direct marketers, verifies that a bill to an address matches the address at the cardholder's issuing bank and Automatic AVS determines whether to process a questionable transaction. Other tools can block transactions above a ceiling limit, detect duplicate transactions and monitor customer activity against a database to detect abnormalities.
West Marine, Watsonville, CA, a boating supplies cataloger, was unaware that two employees were issuing fraudulent credits to its accounts and turning those credits into cash until Paymentech installed a database to match credit transactions with recorded charges.
“With all these ATM cards out in circulation, this type of thing is easy to do,” said Dave Rowan, West Marine director of management controls, who is trying to add a similar detection system in the company's retail outlets. “Paymentech was able to research this and catch it. That's pretty powerful. I don't know anyone else that can do that.”