In a recent guest feature for Mashable, Chargebacks911® Project Manager Mark Watson insists that geolocation technology can help merchants fight back against potential fraudsters.
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Geolocation technology works by tapping GPS (Global Positioning System) information generated by the device during a purchase. The tool identifies the location of the device used to transact against location data tied to the legitimate cardholder, such as their billing address.
While Mark said that geolocation was important, he also warned that, like any fraud prevention tool, it is still fallible.
“Let’s say you submit a transaction to geolocation checking,” he said. “You deploy other fraud tools as well, and all give the green light. But then, a little while later, a ‘fraud’ chargeback appears in your processor’s portal for that exact same transaction. What’s going on? It could be that your customer has forgotten about the transaction. Or, maybe they can’t recognize your billing descriptor. Those are both possible; then again, it’s also possible that the buyer may actually be engaged in deliberate chargeback abuse.”
