Fraud Tools

Caledon employs many different fraud tools aimed at significantly reducing and/or eliminating fraudulent online payment processing, fraudulent transactions and chargebacks. Many of these tools are included at no extra charge with Caledon payment processing solutions:

CVM (Credit Card Validation Method) (included with any Caledon service although not mandatory)

• Credit Card Validation Method, called either CVV2/CVC2/CID based on the card type
• Most common and most effective fraud tool for ‘card-not-present’ merchants
• Verification codes are not embossed on the credit card or encoded on the magnetic stripe
• Used to verify that a customer purchasing online or over the phone has the credit card in hand

Velocity Checking (included with any Caledon service although not mandatory)

• Provides the option to define a maximum amount for purchases
• Controls the number of times and maximum dollar value that a credit card can be used for within a given period of time.

Credit Card Blocking (included with any Caledon service although not mandatory)

• Based on previous experience with a customer, you may decide not to accept their credit card even though the card may be legitimate and valid
• A “contra table” holds a list of all credit card numbers that your business has identified as being “unwelcome” and these credit card numbers are automatically rejected

AVS (included with Caledon Merchant Accounts, available for gateway clients at a minimal fee although not mandatory)

• Address Verification Service
• Available for most Canadian and U.S. personal credit cards, including VISA, MasterCard and American Express; not supported for commercial or business cards
• Canadian AVS compares your customer’s “bill to” address against Canadian credit information (including full name and address) through Equifax
• U.S. AVS compares the street number and zip code provided by your customer to the cardholder’s credit card statement address

Verified by Visa®/ MasterCard SecureCode™ (available for an additional fee)

• Initiatives introduced by the card associations to strengthen the cardholder authentication process for internet based transactions
• Designed to reduce the number of costly disputed transactions referred to as “charge-backs”
• Service allows cardholders to register their credit cards with their issuing bank and setup a password to be used when shopping over the Internet
• Merchant liability is passed onto the cardholders issuing bank reducing fraud or chargeback risk

Click here to submit an inquiry for a Caledon merchant account which includes our fraud tools!