Posted by : trraju on Oct 06, 2003 - 07:58 PM WebTechnology

ClearCommerce has improved the fraud prevention capabilities of its online payment engine, ClearCommerce 5.3. The company said its additions would do more to protect online retailers against losses from fraudulent transactions.
Recent research for the Interactive Media and Retail Group (IMRG) indicates that UK online sales will be worth at least £14bn in 2003, up from £7.6bn in 2002. Evidence suggest this figure would be even higher if more consumers were convinced that they would not fall victim to fraud if they buy online.

A Mori poll commissioned by the Department of Trade and Industry before last Christmas found that users were worried about three things: credit card fraud, bogus firms operating online, and the possibility that personal data might be stolen.

The DTI said consumer rights, such as those enshrined in the Distance Selling Regulations, protected shoppers if criminals stole their details to place orders, adding that ultimately fraud costs fall on merchants.

A report released by analyst company Gartner at about the same time last year predicted that online retailers in the US would lose nearly $160m to fraud over Christmas.

To protect companies from such losses ClearCommerce's new engine has increased support for the payment-transaction and authentication services of Visa's Verified by Visa system, and MasterCard's MasterCard Secure Code system, as well as other card verification methods, including Automated Clearing House (ACH).

ClearCommerce also includes support for another fraud-detection tool used by some card providers, called Card Verification Method (CVM). CVM requires online customers to input a three- or four-digit number from their credit card when they want to make a purchase.

ClearCommerce's engine also provides analytic tools that can check purchases for unusual attributes that might indicate fraud - these include the location of the IP address, differences between billing and shipping addresses, the order quantity and the transaction amount.

Robert Lynch, chief executive at ClearCommerce, commented, "Businesses selling online must protect their revenue and profits from the growth in fraud attacks, including the skyrocketing problem of identity theft, and offer their customers expanded choice in payment options."