Prevent credit card fraud

Question 1

EMV

Answer 1

a global standard in which credit cards carry computer chips that cut down on counterfeiting. The U.S. is now implementing EMV.

Question 2

acquiring bank

Answer 2

puts money into the merchant’s account (minus its fee).
The bank with the relationship with the merchant. The bank acquires—or accumulates—the credit card purchase slips for processing into the payment system.

Question 3

card validation code

Answer 3

is an algorithmic control number that, together with the cardmember account number, can be associated internally to ensure the validity of the card.
A three-digit security number in italics is imprinted in the signature panel for MasterCard, VISA and Discover. The American Express card number is printed on the face of the card and contains four digits. It is generated with a mathematical algorithm to match only the account number of that card. When someone is able to give this number, it proves that he or she has the card in hand.

Question 4

Address Verification System (AVS),

Answer 4

The system compares the address information against what’s on file with the bank for that card number/customer and returns a code telling you if there’s a match. You then wait to see that the authorization has been approved and that the requested transaction is complete.

Question 5

approved-to-travel list

Answer 5

the list of people allowed to travel using this card, corporate travel.

Question 6

Chip-enabled credit cards that appear on the face of your credit card can help prevent your online payment credentials from being stolen.

Answer 6

false

Question 7

The indication from the credit card company that the card is in good standing and has not been reported stolen and that the amount is not over the credit limit.

Answer 7

Authorization code

Question 8

Chargeback

Answer 8

An amount that is charged back through the system to the merchant. Generally, the bank notifies the merchant with a debit memo, which deducts the amount of the transaction from the merchant’s account.

Question 9

Issuing bank

Answer 9

The bank with the relationship with the customer. It “fronts” money for purchases immediately back to the acquiring bank and then to the merchant, and subsequently collects the money from the customer.