Online credit card fraud has become a large problem as users have embraced the Internet as a way to buy goods and services.
The credit card companies have established a variety of programs to reduce your exposure to potentially fraudulent situations. These programs are designed to quickly and effectively determine the authenticity of submitted transactions. To protect your card from fraud, the card companies require Internet merchants to participate in these programs.
The Address Verification Service is an anti-fraud program that is built into the card processing network. Your address information, collected by the online signup system, is submitted to the card processing network, and is passed to the card's issuing financial institution. The financial institution compares the provided address to the billing address on file, and if the address does not match, then the transaction is declined.
While the AVS system is extremely efficient at verifying addresses, it is not uncommon for a legitimate transaction to be declined. If something is misspelled or a slightly different address is on file with the financial institution, your card may be declined.
The easiest way to solve AVS verification errors is to make sure that you are providing the exact billing address (including name, street, city, state, and ZIP) that is provided on your card statement.
If this fails to resolve the problem, contact your financial institution and verify your address. Be sure to mention that you are having difficulties passing an AVS fraud check. Your financial institution should be able to provide additional guidance as to how to pass the AVS check.
Megabitz is not provided with a copy of the address that your financial institution has on file. It is not possible for Megabitz to determine whether the mismatch is an "obvious typo" or an actual fraudulent transaction.
In some cases, the card processing network may reject a transaction based on an AVS verification failure, but will still capture funds as part of the preauthorization process. If this happens, the reserved amount will be held by your bank and eventually returned to your available credit line. Submitting multiple signup requests that fail may reserve funds multiple times, depending on your bank's policies.
The Cardholder Verification Number is an anti-fraud program that is built into the card processing network. MasterCard calls their version of the program "CVC2" (Card Validation Code), and VISA calls theirs "CVV2" (Card Verification Value).
In a traditional retail environment, cardholder verification is done either by taking a physical impression of the cardholder's card, or by magnetically swiping the card. Neither of these steps can be performed for Internet transactions. The CVN program is an attempt to provide an additional level of verification for Internet transactions. This number is never printed on a receipt, nor may it be stored by a merchant.
No. MasterCard and VISA requirements are that the CVN number is not to be stored by merchants. Therefore, CVN is not checked when recurring transactions are processed. However, the card companies do require that the first transaction processed must be CVN verified. Once the card has been verified, there is no need to verify the card each time a future payment is processed.
The CVN is usually the last three digits of a printed number on the back of your card.
It is not embossed (raised up) like the numbers on the front of the card, and it is not your PIN, the number that you use to get money from a cash machine.
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