Recommendations to avoid chargebacks

Machnet recommends enabling the below-listed features to minimize the risk of fraud and transactions from fraudulent users. These features have been used and have proven to decrease the number of fraudulent transactions from high-risk users. 1. AVS Check: We would like to recommend using Address Verification Service (AVS) check as an additional layer of security for your transactions. AVS check is a fraud prevention service that verifies the billing address provided by the customer during a transaction matches the address on file with the card issuer.After each transaction, review the AVS check results. If the AVS check fails, restrict the users from performing the transaction. In other words, only allow the transactions with AVS Check result ‘Y’ and deny all other transactions. Please find the detailed information on AVS Codes here.

2. 3DS Authentication: To further enhance the security of your transactions and prevent fraudulent activities, we highly recommend the use of 3D Secure authentication. This fraud prevention tool adds an additional layer of verification. This will help identify potentially fraudulent transactions before they are completed.After each transaction 3DS Authentication result is reviewed.Below are the results that are received after 3DS Authentication: A. Frictionless Flow: Once the transaction has been initiated by the user, using a card, the details are submitted to the ACS (Access Control Server) to determine the authenticity of the cardholder.The ACS will then screen it with the risk-based elements. If the risk is deemed to be low, the ACS can authenticate the user passively and not bother them with the extra confirmation and the transaction is processed without any additional authentication. *Access Control Server (ACS) is the server that enables bank customers to authenticate themselves and complete card-based online transactions securely. The ACS is built on the 3-D Secure rails defined and certified by global card networks, including Visa and Mastercard. B. Additional Authentication Required from the users: If the authentication result is deemed to be High, the user is redirected to their card issuer’s 3D secure web page where an OTP is sent to their registered mobile number. Once they input the OTP, verification is complete and the transaction is processed successfully. C.Authentication Failed /Denied: In an event where the authentication system has identified a card with a history of fraudulent activity, the system may prevent the cardholder from completing the transaction.The user will not be able to process the transaction. 3. Voip Check:We highly recommend implementing VOIP check as a fraud prevention measure to minimize the risk of fraudulent transactions. VOIP check is a process that verifies whether a phone number is a legitimate mobile phone number and not a VoIP or virtual phone number, which are often associated with fraudulent activities.By using VOIP check, clients can reduce the likelihood of fraudsters using fake or virtual phone numbers to complete fraudulent transactions. Enabling these features can help reduce the risk of fraudulent transactions and chargebacks. Based on the risk exposure of the client’s platform, Machnet shall mandate any or all of these features to be implemented in the service platform to reduce fraud users and transactions.