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The National's new online, real-time electronic fraud detection tool is saving National business customers thousands every day, said the General Manager, Global Payments, Mr Mike Laing. Earlier this year the National implemented a new fraud detection system that uses a real time method to detect credit card fraud against the acquirer, or merchant business. Certain credit card transactions will trigger a response from the system, which results in the National's Merchant Fraud investigation team examining the transaction and responding appropriately. "Once the Merchant Fraud investigation team receives notification from our fraud detection system, they swing in to action. They quickly check all aspects of the credit card transaction and make contact with the merchant who is selling the good or service," said Mr Laing. A recent example of the effectiveness of our fraud detection system can be seen in the following case study. Last month a local retailer received an order from Ireland for retail goods. The fax provided a credit card number and an overseas address to send the goods. At 10.55am this retailer, who is a National merchant, keyed these transactions, which totalled $25,000, through his terminal. Our fraud detection tool raised a concern with the transaction and an investigation officer received an alert five minutes later at 11.00am. The officer then investigated the credit card number and discovered that an Icelandic bank issued it. The Icelandic bank was contacted and it was discovered that the credit card transactions were fraudulent. At 11.20am the bank was able to advise the merchant not to proceed with the sale. "The bank's fraud detection unit had saved the merchant the cost of the goods, as under the Credit Card scheme rules the merchant would have been liable for the cost of the transactions when they were disputed by the legitimate cardholders," said Mr Laing. "A 'next day' notification system would have been too late to prevent this type of fraudulent transaction. This situation highlights that the National's real time system is saving merchant businesses over thousands each week," added Mr Laing.
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