Negative Database: The “No-Fly List” for Payment Fraudsters
Experts predict that by 2020, online sales will reach $4 trillion worldwide. Given the sheer volume of e-commerce transactions, it’s very difficult to prevent credit card fraud. Furthermore, once a criminal gets hold of a user’s payment data, there is no limit to how much damage that thief can inflict.
To make matters worse, much of this online abuse happens anonymously. As an e-merchant, rarely will you meet a customer face to face. Consequently, it’s next to impossible to verify that the individual making the purchase is indeed the cardholder.
Fortunately, the online buying process isn’t completely anonymous.
Many thieves leave digital footprints behind, in the form of online clues that make it easier to weed out suspicious activity. As they continue to rack up fraudulent charges, it’s not uncommon for criminals to keep using the same:
- IP addresses
- Mailing addresses
- Email addresses
This laziness works to your benefit. That’s because with BluePay’s Negative Database, it’s possible to flag these suspicious purchases and prevent unauthorized transactions from going through.
How Does the Negative Database Work?
The Negative Database is essentially a “no-fly list” of e-commerce shoppers.
At BluePay, we provide two levels of control:
Option 1: Create Your Own Negative Database
As a merchant, you can upload your custom-designed list of IP, postal and email addresses that you don’t want entering your system. Any time a customer tries to buy using one of these blacklisted criteria, the transaction is automatically rejected. You can continue customizing this list over time.
Option 2: Use Our Comprehensive Database
It’s also possible to use our global list of suspicious IP, mailing and email addresses. Every time we detect fraud anywhere within our network, the entire database automatically updates to ensure that your business benefits from real-time protection.
To see how BluePay’s Negative Database filter works in practice, be sure to watch this free demo video.
Making the Negative Database Work for You
This is a very powerful tool that will dramatically help reduce credit card fraud within your payment environment. As a standalone tool, this filter won’t stop all criminals — just the laziest ones who use the same information again and again.
This is why we strongly recommend combining the Negative Database with some of our other advanced fraud management tools, including:
- The CVV (Card Verification Value) filter, which requires the buyer to provide an additional verification code to which not every criminal will have access
- The Velocity filter, which limits the frequency of purchases entering your system within a 60-minute window
- The Card Issuing Country filter, which allows (or rejects) purchases based on the bank’s country of origin
- The AVS (Address Verification) filter, which checks to see if the billing address provided by the shopper matches what the bank has on file
For a complete list of the security filters in our arsenal, be sure to read Fraud Management Tools.