Accepting international payments brings new risks. Statistics continue to show that cross-border payments have higher fraud. You can take a few steps to help mitigate these risks to increase your online sales. While explained in more detail in Chapter 10, a good practice is to monitor and adjust your fraud strategies to account for different patterns between domestic and cross-border payments. More information on fraud management and best practices is available from your acquirer/processor, the card brand schemes and industry solution providers.
Related to managing payment fraud are the various card fraud monitoring programs. In addition to the domestic programs, there may also be cross-border programs. Contact your payment services provider for more information about these programs and the various fraud mitigation tools/services from the card brands (e.g., AVS, CVV2 and payer authentication, which comes with liability shift) and vendors in the industry to provide you with a layered security approach.
The processes for chargebacks and returns for accepting payments from Canada should be similar to your domestic practices.
Chargebacks and Returns
You should become familiar with the chargeback representment rights associated when using various payment card fraud tools and services. For example, with Visa’s interna- tional address validation service (IAVS), it can only be used to confirm addresses if the card Issuer supports this tool, which all Canadian Visa Issuers do. If you submit an address outside the U.S., you will receive the response message “G” for Global. In such cases, you should take further steps to verify the address. You will be liable for any chargebacks if you accept the transaction, even if the card issuer approves it. You can work with your merchant bank to ensure that all supporting evidence for the represent- ment is submitted.
Merchants that use payer authentication services, such as Verified by Visa or Master- Card SecureCode, are protected by their merchant bank from receiving certain fraud- related chargebacks, provided the transaction is processed correctly. If you do not participate at this time, more information is available from your acquirer/processor or at www.visa.com/verified merchants.
In addition to the payment card domestic chargeback monitoring programs, there may also be global chargeback monitoring programs. Check with your acquirer/processor for more information.
All merchants must comply with the current Payment Card Industry Data Security Standards (PCI DSS) requirements regardless of whether the transaction is domestic or international.
Visa e-commerce cross-border handbook for U.S. retailers
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