What is Card not Present error? Why and How does it happen? Table of Contents

The safe and direct purchase of goods and services on digital platforms has benefited everyone involved in the process, such as banks, merchants and consumers. However, with the increasing number of fraud cases, designing a safe and easy transaction has emerged as another challenge. Experts predict that over the next five years, “cardless” fraud will evaporate $70 billion worldwide. Nevertheless, the public prefers to pay using a credit card for convenience and convenience. It is still struggling to become mainstream for cryptocurrency payments.

What is “Card not Present”?

The card-not-present scam is a type of credit card scam, a new type of online credit scam in which consumers do not actually present their credit card. Occurs from transactions over the phone or online. Such scams are difficult to prevent in advance, as the merchant cannot determine the presence or absence of a credit card. Any losses incurred will be the responsibility of the merchant.

How does Card not Present happen?

Credit fraudsters have credit information from a variety of sources. This information includes the cardholder’s name, account number, billing address, and CVV (security number). Here’s how credit scammers collect data:

Skimming
Restaurant, store clerks, and waiters can steal information when cardholders are unaware. Card information can be easily obtained when a customer makes a payment.
Phishing
Credit scammers, like bank clerks, send e-mail information that pretends to be official institutions and entice cardholders to respond.
Black Market
Hackers access restaurants, retail outlets, or cloud platform servers, then hack personal information and sell it on the black market. Fraudsters are making it even more difficult to prevent fraudulent purchases that have access to data but do not have an “online transaction” card. Merchants can protect customer data, but hackers are always working on solutions. A case can be found in the leak of customer information of the hotel chain “Marriott” that occurred in November 2018.
Chargeback Fraud
This method is used to steal information using a third-party card rather than the card by convincing a customer to mislead you that they did not authorize the transaction.

Blockchain provides a secure option

Banks have introduced EMV chips to prevent such scams. However, even that measure cannot be free from hackers. Transactions through the Banmyung blockchain or cryptographic hacking can solve financial fraud with advantages for both merchants and consumers. Performing transactions through a decentralized ledger can be a bit freer from financial fraud. The blockchain project that strives to provide simple and convenient blockchain and virtual currency is IronX Exchange.

The IronX cryptocurrency exchange is a joint venture between the award-winning global online trading leader IronFX Group and the EmurgoHK Group that invented the Cardano blockchain. IronX aims to provide better services by combining the latest blockchain technology in addition to the flexibility and convenience built into the existing platform.

See a list of Cryptocurrency Exchanges

What is IronX?

IronX is an appropriately regulated cryptocurrency exchange approved by the Estonia FIU in September 2018. This is important to the exchange that is about to launch, and it provides a more comfortable and safer trading environment for beginners and professional traders. IronX is now preparing licenses for Gibraltar and Malta. We provide 24/7 customer support in over 30 languages.

IronX aims to provide better services by combining the latest blockchain technology in addition to the flexibility and convenience built into the existing platform.

In addition, IronX Exchange will differentiate itself from other exchanges based on the connection with global banks already owned by the IronFX Group, various deposit and withdrawal methods, multiple licenses, a broad customer base, and excellent operational know-how.

Go to IronFX Official Website