A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
The process of authorization is used to determine if the cardholder has sufficient funds in his account to pay for a given transaction. In case of insufficient funds, authorization is declined and the user cannot complete his online transaction.
1) Focus on fraud prevention- When a user initiates a transaction, then follow these practices.
a) If you are using verified visa code then complete the authentication process for the same and provide the data in the authorization request. This helps to add an extra layer of security.
b) You can obtain fraud screening procedures from third-party vendors or develop them internally. This helps you to detect suspicious transactions and verify the cardholder at every step.
c) Obtain authorization from the card issuer after the transaction passes your internal checks. Don’t forget to include the card security codes and Address verification service in the authorization process.
2) Use the correct ECI for all eCommerce transactions. ECI stands for electronic commerce indicator that helps to differentiate the internet merchants from other merchants.
3) You should obtain a new authorization if the original one expires.