The merchant risk council is a non profit

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must or are advised to follow. The Merchant Risk Council is a non-profit organization that teaches the best practices for online businesses in order to protect themselves from frauds and problems including the charge back problem. The organization was found in 2000. It provides free teaching and information to the companies who agree to its principles for fighting fraud. The organization works on developing antifraud technologies and multifaceted defences to curb credit card thieves. “The resources include a number of online services that e-commerce merchants have identified as effective for analysing customer orders and catching fraud before it happens”. Similarly, the Charge Back Bureau also helps the companies prevent the charge back problem. This organization holds a database of the credit card numbers and addresses, the purchases from which resulted in a chargeback. Various methods have been developed in order to prevent the occurrence charge back problem. Due to these methods, the charge back problem seems to be a solvable problem. The card associations follow certain best practices to prevent online frauds. These practices include
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Running head: THE CHARGE BACK PROBLEM 3 using a firewall, encryption, antivirus software and intercompany security practices. The companies use risk management techniques and fraud-prevention software. Using the database of charged back credit card numbers and addresses from the Charge Back Bureau; the companies verify all the purchase card numbers and addresses in order to confirm whether these cards have been charged back in the past. This helps them make decision whether or not to proceed with the sale. They also use the MOD 10 method to verify the validity of credit card numbers. The companies can either use these verification techniques online or can integrate them into the e- payment systems on their websites. Besides this, the phone numbers, addresses, Internet Protocol addresses, e-mail addresses etc. of the makers of purchase are captured and verified.
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  • Spring '13
  • Credit card, Charge back, charge back problem

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