High Risk Merchant Account Tips on IP Detection

Any high risk merchant should be aware, if notAs a matter of fact, legitimate buyers would most
become thoroughly an expert, of all the technicalwelcome security measures such as IP geolocation
aspects of credit card transactions. Let's face it,from high risk merchant account providers to protect
doing business online is taking risk a hundred timesthem from credit card fraud. Scammers would hide
more dangerous than doing business the brick andbehind anonymous e-mail addresses and proxy
mortar fashion. Smart merchants would never plungeservers. The most that high risk merchants can do is
headlong into online ventures without a good,to filter suspicious IP addresses. The process goes as
working knowledge of the loopholes of the billingfollowing:
process via credit cards.1. Merchants detect IP address using geolocation
High risk merchant account providers employ varioustechnology and IP validation technology. It may be
tactics to mitigate the frequency of chargebackscategorized by country, zip code, area code or billing
such as restriction on the use of anonymous e-mailaddress.
addresses, credit card validation, IP address2. The geolocation/IP validation technology identifies
detection, and proxy server identification.where the user is located spot-on and compares
Anonymous E-mail Addresseswhere the person making order is located and his
They would make sure email address, phone number,actual billing address.
zip code, credit card, mailing /shipping address and3. Merchants analyze, double check transactions, and
other forms of identification are valid. It's ratherfilter legitimate and illegitimate transactions. They may
commonplace to hear that if you were dealing withalso block transactions considered as possible frauds,
credit cards, it would be unwise to accept credit cardor transactions originating from fraud-prone high risk
owners that provide anonymous or free e-mailcountries.
addresses such as @yahoo.com, @hotmail.com, orProxy Server Identification
Credit Card Validation and Other IssuesIP address detection also goes hand in hand with
All low risk and high risk merchants are required toproxy server identification. Merchants may find
integrate a credit card validation system with thedifficulty in detecting IP addresses if customers hide
customer's issuing bank.behind anonymous proxy servers.
To make it even foolproof, merchants would doubleWhat is a Proxy Server?
check for phone number and zip code authenticity, asA proxy server facilitates network performance by
well as compatibility with the customer's billingmaking use of a caching system. The cache is a
address and issuing bank's country. Some would eventemporary storage for data that have been viewed
make sure they are not doing transactions withrecently (like a brain's short term memory). The
customers that originate from high risk countries.purpose is to prevent data such as web pages and
How IP Address Detection Worksimages from being downloaded repeatedly, thus
Merchants, however, will find even better benefit insaving time on accessing them online. Another is to
taking advantage of detecting the IP addresses ofhelp network administrators filter sites that they
their customers. Security is a tall order when it comesdeem other users of the network must not access.
to buying and selling online.