Fraud Prevention

Trading online has many benefits for your business, but it also brings with it the possible risk of card fraud and its associated costs. As a payment service provider, Nochex provide all Merchants with a range of anti-fraud tools that should enable you to minimise your risk to fraud and reduce potential losses.

Anti-Fraud Measures include:

Advanced fraud detection
AVS (Address Verification Service)
CVV2 (Card Security Number Confirmation)
3D Secure (Internet Authentication Protocol)
Peace of mind with support from our in-house anti-fraud team
Ongoing fraud awareness to help you reduce and manage the risk of fraud

Further reduce your risk of fraud with 3D Secure

As part of our ongoing commitment to help reduce your fraud risk, all Nochex transactions are checked for participation with the 3D Secure service - the leading 'internet authentication protocol' designed to operate with both Visa and MasterCard branded cards.

The term 3D Secure includes both Verified by Visa and MasterCard Securecode checks and can be thought of as similar to an online version of 'chip and pin' technology, whereby the cardholder has a personalised password registered with their card that is input during the checkout process.

By using 3D Secure, you can actively reduce your risk of fraud and chargebacks. Learn more about Nochex and 3D Secure and read the UK Payments Association's guide to Verified by Visa and MasterCard SecureCode.

Download [320kb]

For further information please visit the Verified by Visa and MasterCard SecureCode websites.

Chargebacks

A chargeback can arise when a cardholder (customer) disputes a payment made on their credit or debit card and initiates a refund from their card issuer. There are a number of reasons why chargebacks can occur but the most common reasons are:

The cardholder denies they made or authorised the transaction. This could be from simply forgetting what the transaction was for; or due to the unauthorised (fraudulent) use of their card;
The cardholder claims they did not receive the goods or services they purchased;
The cardholder claims the goods or services were not as described;
The cardholder claims the goods or services were faulty or damaged;

Chargeback Protection

The Nochex Chargeback Protection system is a free service that we offer to all Nochex Merchants that has been specifically designed to help you both reduce your risk of card fraud, and give your customers increased confidence in your payment system.

When you receive a card payment through Nochex, to help you to reduce the risk of online fraud and ensure that you ship to the correct card holder, we provide you with a range of information including confirmation of the address details of the cards used to make the Emoney purchase.

The chargeback process

Once a dispute has been raised the chargeback team is contacted with the details by our Merchant bank. The chargeback team asses the case and will contact you requesting the information they require to prepare a defence against the chargeback.

Once the cardholder’s bank has raised the chargeback then they charge Nochex’s Merchant bank with the disputed amount, who in turn charge Nochex for the amount and this charge is passed on to you as the Merchant or Seller This system is the payment scheme and industry standard.

The charged funds will be returned providing the chargeback is successfully defended. Please note that we require confirmation from our Merchant bank before we can re-credit the funds. This may take up to 90 days dependant on the Issuer that raised the Chargeback.

The responsibility for chargebacks and their associated costs lies with you as the merchant or seller, but we do our best to help you reduce the risks. All chargebacks charged to your account are subject to our standard chargeback fee of £10.00.

Retained balance

When you successfully apply for a Nochex Merchant Account you agree that Nochex holds a retained balance. This is an amount of money that we require you to always have retained in your account to cover the risk of any chargebacks or other charges. The value of the retained balance will be agreed with you when you apply for the account and may be varied by discussion with you if the profile of your business changes. Typically the retained balance is in the region of 5 days trading.

The retained balance is normally built up from transactions you receive. You do not have to deposit this amount yourself and if you ever close your Nochex Merchant account the retained balance will be refunded to you, less any allowance for chargebacks on charges within a maximum of 180 days. We have to retain the balance for 180 days because chargebacks can still occur several months after the closure of an account.