The festive season will see a spurt in online transactions, making e-retailers more vulnerable to fraud, says payment gateway provider E-Billing Solutions.
“From November to December, online transactions are expected to nearly double compared to other months. If you are not covered by a foolproof fraud detection mechanism, online retailers are under great risk of fraud,” says Laurent Dhaeyer, MD, E-Billing Solutions (EBS).
Fraudsters usually use stolen credit cards or bank account details to shop online.
Mumbai-headquartered EBS was acquired last year by Belgium-based Ogone, a payment solutions player. EBS serves over 6,000 online merchants in the country, including Snapdeal, Bookmyshow and Air India. (CCAvenue, Citrus Pay, TechProcess and PayU are the other payment solutions providers in the market.)
EBS’ payment gateway has an inbuilt fraud detection mechanism. Now, it is offering a more sophisticated risk management tool from its parent company Ogone.
“Current tools in the market just check basic details such as the user’s PIN number and nationality. Ogone checks for a range of parameters: bank account details, phone number, delivery address and the computer’s IP address,” says Dhaeyer.
Velocity check
Ogone does what it calls a ‘velocity check’. The tool raises an alert if a particular credit card number has been used more than a certain number of times.
“People may buy two-three Louis Vuitton bags in a single transaction. But it is a little odd if the same person buys three times in a day. Also, if we see several credit cards being used from the same IP address, we review those transactions.”
EBS is demonstrating this tool to several players in the country, including the Indian Railways, whose IRCTC Web site generates the heaviest online traffic in the country each day.