Authorize.Net, a CyberSource Solution, is a leading payment gateway company with many years experience in combating credit card fraud. We asked Roy Banks, President of Authorize.Net, about common errors that merchants make with fraud prevention.

PeC: What's the biggest fraud-prevention mistake made by ecommerce merchants?

BANKS: Failure to use the Address Verification Service. It's a free option from most payment gateway companies and will potentially lower a merchant's processing costs when used. Unfortunately, many merchants don't use it. Another common mistake is merchants don't always require the card verification code from the cardholder at the time of sale. This is also a service that is free from most payment gateway providers. By using both AVS and Card Verification Code, merchants will be able to better detect and prevent thieves who attempt to purchase with a stolen credit card number.