Credit card prevent fraud with PHP and MYSQL database

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Credit card fraud has become pervasive on the Internet. According to MasterCard International, account takeover fraud has increased by 369% since 1995. It has become one of the fastest growing types of fraud, and one of the more difficult to combat. More than $700 million in online sales were lost to fraud in 2001, representing 1.14 percent of total annual online sales of $61.8 billion, according to GartnerG2. Even if the credit card company has given the authorization as to the validity of the card, there are several ways fraudulent cards can be used on your site. The card may have been lost or stolen, but the card owner is yet to report its loss. Or the number on the card (and not the card itself) may have been lifted without the knowledge of the owner. There is also a scam called identity theft, where the card has been issued under false pretenses using someone else's identity and data.

As an online merchant, you need to have a system to check the authenticity of orders placed to safeguard your business. While the effort may require additional time and money, it can save you the cost and stress caused by charge-backs for fraudulent orders. You lost your physical products; you lose the sale price; you lose another business opportunity; and you will be fined an additional $15-$50 charge-back fee. If you have a high percentage of charge-backs, your card services company can even blacklist you and cancel your merchant account. You will also spend time looking up the order and provide the requested information to your card services company. All of these hassles are things you can surely do without.

How can you protect your business from credit card frauds? Here are a few steps that can be taken to ensure that the transaction is being requested by the real cardholder.

Suspect shipping address.

According to ClearCommerce Corporation, a provider of payment processing and fraud protection software for e-commerce, orders from Ukraine, Indonesia, Yugoslavia, Lithuania, Egypt, Romania, Bulgaria, Turkey, Russia and Pakistan have a very high incidence of fraud, and often have unverifiable addresses.

Untraceable email address.

In many fraudulent orders, the customer's email address is often at one of the free email services, like hotmail.com and yahoo.com, which are relatively untraceable.

Expensive items.

Be wary of expensive orders, especially for expensive brand-name items.

Multiple items.

It can be a bad sign, for example, if someone orders three X-Box or three DVD players at once, especially where the items have a high resale value.

Express shipping.

Most fraudulent orders specify overnight or 1-day shipping without hesitation.

Shipping address differs from billing address.

Receiving point and billing address are different in fraud orders. If you are selling valuable items, it can be a good policy only to ship to the billing address of the card's holder.

Suspicious billing address.

The address looks too simple or invalid. If the billing address is 123 Main St, New York, the order is probably fraud. You can use or online location tool to see if the address can be verified.

Leave at door or post office box.

If the courier service cannot guarantee delivery of goods, the risk of fraud is very high.

The advancement of geo-targeting in the Internet allows us to pinpoint the geographical region for an order. The information can be used to reduce the fraud by verifying it with the billing address and delivery address. This method can identify the scenario where someone from country X has stolen the credit card data from country Y. The IP address lookup service will reveal the real country instead of relying on the country filled in the order form.

IP2Location(TM) provides technology to translate IP address to country origin. The lookup table is available in several formats such as database and COM. It is the perfect solution to automate the fraud detection using client side programming languages like C++ & Visual Basic; or service side programming languages like ASP, PHP, JSP and CFML.

For example, company XYZ received a credit-card order from IP address 161.139.12.3. The order details are as following:

Name: John Ma

Address: 123 Main St

City: New York

ZIP Code: 11111

Country: United States

Tel: (503) 111-1111

Credit Card No: 1234 5678 9012 3456

Expired Date: December 2010

Credit card merchant processor will authorize this order if the billing address matches the order details. Unluckily, the credit card data has been stolen earlier by Mr. ABC from another country through the Internet. Later, he made a purchase of digital products from company XYZ using the information. His order approved by the merchant because all the details matched John's record in the bank's database. IP2Location(TM) technology can filter the difference between order's country and record's country upfront to protect your business. You can classify this kind of order for manual inspection before delivering the goods. You will be surprise how much this method will help in identifying fraud orders.

In this tutorial, we use the IP2Location(TM) IP-Country database to lookup country of origin from the visitor's IP address. Instead of loading the full database with 50000+ records, we could simplify this tutorial with assumption only two different IP address ranges in the world. IP addresses 0.0.0.0 - 126.255.255.255 originate from United States. Meanwhile, IP addresses 127.0.0.0 - 255.255.255.255 originate from Japan. Here we are creating a database "IP2Location" with table "IPCountry" that consists of two IP address range records.

Step 1: Create and connect to 'IP2Location' database

mysql> CREATE DATABASE IP2Location

mysql> CONNECT IP2Location

Step 2: Create 'IPCountry' table

mysql> CREATE TABLE IPCountry

--> (

--> ipFROM DOUBLE NOT NULL,

--> ipTO DOUBLE NOT NULL,

--> countrySHORT VARCHAR(2) NOT NULL,

--> countryLONG VARCHAR(100) NOT NULL,

--> PRIMARY KEY(ipFROM, ipTO)

--> );

Step 3. Import the 'ipcountry.csv' database into table 'IPCountry'

mysql> INSERT INTO IPCountry VALUES (0, 2130706431,'US','UNITED STATES');

mysql> INSERT INTO IPCountry VALUES (2130706432, 4294967295,'JP','JAPAN');

The full version of IP-Country database is available for subscription at $49/year from http://ip2location.com. If you have the full version of IP2Location(TM) IP-Country database, the import process is much easier by using the LOAD DATA feature available in MYSQL.

mysql> LOAD DATA INFILE "/IPCountry.csv" INTO TABLE IPCountry FIELDS TERMINATED BY ',' ENCLOSED BY '"' LINES TERMINATED BY 'r';

We create a script to compare the lookup country and data given in the order authorization flow. It serves as a filter to reduce fraud. All rejected orders will be manual verify by merchants.

verify.asp

$billingCountrySHORT = "US";

// Replace this MYSQL server variables with actual configuration

$mysql_server = "mysql_server.com";

$mysql_user_name = "UserName";

$mysql_user_pass = "Password";

// Retrieve visitor IP address from server variable REMOTE_ADDR

$ipaddress = getenv(REMOTE_ADDR);

// Convert IP address to IP number for querying database

$ipno = Dot2LongIP($ipaddress);

// Connect to the database server

$link = mysql_connect($mysql_server, $mysql_user_name, $mysql_user_pass)

or die("Could not connect to MySQL database");

// Connect to the IP2Location database

mysql_select_db("IP2Location") or die("Could not select database");

// SQL query string to match the recordset that

// the IP number fall between the valid range

$query = "SELECT * FROM IPCountry WHERE $ipno =ipFROM";

// Execute SQL query

$result = mysql_query($query) or die("IP2Location Query Failed");

// Retrieve the recordset (only one)

$row = mysql_fetch_object($result);

// Keep the country information into two different variables

$countrySHORT = $row->countrySHORT;

$countryLONG = $row->countryLONG;

// Free recordset and close database connection

mysql_free_result($result);

mysql_close($link);

if ($countrySHORT == $billingCountrySHORT) {

// IP address same as country in billing address

// Low Fraud Risk

} else {

// IP address different from country in billing address

// High Fraud Risk

}

// Function to convert IP address (xxx.xxx.xxx.xxx) to IP number (0 to 256^4-1)

function Dot2LongIP ($IPaddr)

{

if ($IPaddr == "") {

return 0;

} else {

$ips = split (".", "$IPaddr");

return ($ips[3] + $ips[2] * 256 + $ips[1] * 256 * 256 + $ips[0] * 256 * 256 * 256);

}

}

?>

Hexasoft Development Sdn. Bhd. (645996-K)
1-2-15 Mayang Mall Complex,
Jalan Mayang Pasir 1,
11950 Bandar Bayan Baru,
Penang, Malaysia.
URL: http://www.ip2location.com

{ sales@ip2location.com }

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How to avoid fraud on your credit card

As online shopping becomes more popular with savvy consumers around the world, also one raised unwelcome side business in activity: credit card fraud.

And while credit card fraud is certainly not online marketplace is limited to that, Internet users learn more than their fair share of dubious transactions every day.

A complete protection of your credit card for online shopping, there is no way, but there are many things you can do to minimize your risk.

The first step towards protecting themselves against credit card fraud is quite simple: be extra, extra careful if your credit card online. This never input of your credit card information if you are sure that the trusted site and is serious. You can the most online-check-out systems figures on third-party processors such as PayPal, which offers an extra layer of protection against credit fraudster, so should they as far as possible.

Also, never respond to emails that ask you to follow certain links and give in even if the site seems to a trusted site like eBay or Amazon confidential information. Internet fraudsters were successful in the development of sophisticated software and Web sites that look like the real thing, so never assume that the link can be trusted. Instead, close the window you open a new browser, again, manually type in the Web address and go this way with your transaction.

It is wise to remember also, that emails are not secure, so carefully keep before sending credit card information by e-Mail.

Here, you should note that to avoid you can help on the Internet, always keep a victim of credit card fraud. If you regularly online - ideally, can your balance at least once a week, your transactions to monitor and, hopefully, unusual purchases at an early stage identify each. If you receive your monthly statement by mail, you should also cross-reference it with your receipts.

Leave your credit card in an offline environment, which is never out of your sight. Skimming - where credit card data will be copied, and then duplicated on new cards - always more and more usual, but there are steps you can take to minimize this risk.

If you are in a restaurant, for example, pass not your card to the waiter. instead into the coffers with him or her to foot and hand over your card itself. If you are in a high end restaurant and you're embarrassed about transactions in this way, excuse and say the waiters to you, that you have been the victim of credit card fraud in the past, so that you it, prefer not to let, Your card out of your sight. It is better to be embarrassing for a few minutes, then find out that thousands of pounds worth of transactions to your card will have accused illegally!

What, if your account has been compromised?

If you, that illegal transactions on your credit card have accused suspect, notify your card provider immediately. You will immediately break your card and issue a fresh card, be applied to all further transactions to prevent. Also, if they investigate and find that illegal transactions have taken place, your account will be refunded.

Peter Carville is a freelance article writer for financial facts about the current financial news and the credit crunch writes.

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10 Ways to prevent online credit card fraud

Every year fraudulent credit card purchases online retailers costs millions of dollars. Without the benefit of assessing a customer and additional identification in person can request it harder, fraudulent charges must be made online be a correct identification. However their can clearly fraud with risk reduction strategies with a little extra effort, online merchants.

(1) If the delivery address does not have the billing address, call the customer directly to the order confirm first of all, if the listed ship-to address of the country.

2. Always require a valid phone number on orders and ensure you, that is the area code of the number of the billing address. Drag the customer calling the number confirm into account.

3. Be suspicious atypical orders, such as unusually large orders or orders for an exceptionally high amount of the same article. If an order suspect seems to determine whether the order is fraud search for you a little more.

4. Other transactions include orders with multiple credit cards purchased, but shipped guard an address. Or multiple orders with the same credit card within a short time.

5. Check the IP address of the customer of the order their position determined. Be careful of international payments , which come from "with high risk" countries or regions, for their high rate of fraud, including Nigeria, Turkey, Lithuania and Russia are known.

6. Scammers will often not more found use email addresses from free Web-based services. Ask the client to an ISP or domain-based e-Mail address, which can be traced back to their location.

7. Use the Address Verification Service (from the most payment processors) shall ensure that the information of a customer the information matches, the Bank that issued the card. Many payment gateways have also a wide range of other fraud prevention tools that you can use to minimize your risk.

(8) When in doubt, call the customer and ask the customers fax a copy of driver's license or passport to authenticate their identity.

9. Make your anti-fraud policy visible on your site and potential scammers to warn, that they fully of the law if the location be tracked fraudulent orders on your website.

10. You can call the issuing bank before authorizing the order.

Global payments

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Avoid fraud credit card processing

Several online providers use multiple payment methods, to improve the chances of a sale final. With several payment options, a very good idea, and the potential is if you sell products or services online, but be careful, your own credit card payment processing can be dangerous, also be financially crippling the new dealer.

Accept payment methods, such as PayPal offers peace of mind through security checks, which was an online retailer to ensure the purpose of payment of the financial owner, such as an address confirmation and a verification process to ensure that PayPal users are legitimate allowed. This service can be very helpful, but PayPal is generally more expensive on a per-transaction basis use to mention all of lose additional funds on international currency exchange can be expensive for the average user of PayPal. I have PayPal personally for several years and they have changed policy management, site features, Fund holds and more far too many times in convinced to keep with them as sole processor. I have other credit card processors. The prices are per transaction usually more aggressive and if you find the right, are pretty good fraud prevention tools for the most part, but a large amount of fraud on a daily basis, you must consider several points in the cards directly process.

The following are some good tips you ensure a fraudulent transactions when processing credit card payments on your own your chances to send and receive a credit card charge back are minimal.

1. Never ship to an address that does not correlate with the buyers of billing address. Make sure that the credit card processor, the you are viewing, service provides an address to the review (most do). You have usually a legend of the letter (sometimes quite randomly), make available to the details of the order. For example, if an order to one of my websites in I clearly see if an address match. If not, I immediately the transaction invalid.

2. Always keep track of IP addresses and verify each order. Most online processors clearly shows the shopper IP address. Make sure that from an area in which you are the shopper IP address to send. Also confirm that the IP address used is the IP address used to place the order, create an account with your site. If possible use fraud of prevention tools, your processor can provide, was to high to block countries. I will not to the highest was countries, that information is readily available, online to do a quick Google search. I can say that 90% of fraud, which has come through on my websites come from Africa or Venezuela.

3. Void of a transaction, as soon as you can if you suspect fraud. Cancel a transaction before it is executed as a batch, has save a ton of money int he long-term. As soon as notification batches, the payment (loads the clients show), there is a processing fee. The fee ranges for online transactions, depending on your product, market and risk to the processor. Cancel a transaction is usually a small per transaction fee incurred, but there is much less than an actual processing fee. My transaction fee is $0.10.

4. Call your customers, you have orders confirm the suspicion. If the customer phone number made available has not, by e-Mail and request that it is absolutely necessary to make available to a phone number for shipping purposes. You can qualify this way, that you have to do, by having a quick conversation to determine, the content/shipping address of the order.

5. Clearly displayed a fraud alert on your checkout pages. I've found that this can reduce fraudulent transactions by at least 50%. Going by the messages I use something along the lines of "all be reported fraudulent transactions immediately authorities for investigation." "Fraudulent transactions will be prosecuted to the full extent of the law." I also clearly outline that absolutely no orders to addresses other than the billing address for some reason card holders are shipped. Fraud and wasted time can significantly reduce this tactic.

After years of processing payments via PayPal and other processors I have to say that above learn through hard experience has acquired. Create rules and to keep from them. Do have a bad feeling about a transaction, to confirm the steps that you have to do. If you effectively not possible not order ship is,.

http://www.freenetreviews.com

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