Venues using the Braintree payment gateway have several additional features that can be enabled to assist in reducing fraudulent transactions.
Address Verification System (AVS) is one of the most simple and effective ways you can ensure a customer is, in fact, the cardholder. AVS checks to see if the billing address of the customer matches the address on file with the credit card issuing bank. If the two don’t match up, that’s a red flag that the card might be compromised.
You can read more about Braintree's AVS feature and how to activate it here - Braintree Basic Fraud Tools (AVS & CVV Rules)
3D Secure is an additional security layer for online credit and debit card transactions that adds an authentication step for customers making online purchases. 3D Secure is safer than processing cards normally, for you and your customers. By enabling 3D Secure alongside Braintree's fraud tools, you can reduce your risk of fraud and chargebacks.
It is used to authenticate the cardholder during payment processing, similar to entering a PIN for an ATM or EFTPOS transaction. When a customer pays online, Braintree will perform a 3DS lookup and the card's issuing bank will decide whether the cardholder's identity can be verified using data supplied in the lookup.
If additional authentication is necessary then an authentication request will be sent - generally a one-time passcode will via SMS or the issuing bank's mobile app, however some issuing banks also use biometric recognition methods such as fingerprint or voiceprint, or other means.
You can read more about Braintree's 3D Secure feature and how to activate it here - Fraud Tools (3DS Secure)
Kount is a third-party provider that provides advanced fraud tool for Braintree, where a range of fraud detection tests (from fingerprinting to proxy piercing) are implemented to analyze each transaction or verification within milliseconds.
There are two types of Kount advance fraud tools that you can enable through Braintree:
- Kount Standard - utilizes rules predetermined by Braintree
- Kount Custom - allows you to directly set your own rules via Kount's back-office tools
You can read more about Braintree and Kount, and how to activate it here - Braintree Advanced Fraud Tools