Online fraud is a serious and growing problem, one that cost merchants an estimated $1 billion in 2002.
While liability for fraudulent card-present or in-store transactions lies with the credit card issuer, liability for card-not-present transactions, including transactions conducted online, falls to the merchant. As you probably know, this means that a merchant that accepts a fraudulent online transaction does not receive repayment for the transaction and additionally must often pay penalty fees and higher transaction rates. One notable exception, buyer authentication, is discussed in the Buyer Authentication section of the User’s Guide.
PayPal’s Fraud Protection Services, in conjunction with your Payflow service’s standard security tools, can help you to significantly reduce these costs and the resulting damage to your business.
To enroll with and use the Fraud Protection Services products, merchants must meet the following eligibility requirements:
1) Merchant must have a current, paid-up PayPal Payflow ProSM or PayPal Payflow LinkSM gateway service account.
2) Merchant account must be activated with the gateway service.
3) Merchant must have its business operations physically based in the United States.
4) Merchant must use a terminal-based processor supported by the PayPal PayflowSM gateway.
To upgrade to Advanced Fraud Protection Services, the merchant must have a current, paid-up Basic Fraud Protection Services account.
To upgrade to Buyer Authentication or Account Monitoring Services, the merchant must have a current, paid-up Basic or Advanced Fraud Protection Services account.