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Fraud Department for Card Payments


Can anyone provide insight as to where fraud departments relating to credit card payments reside within their organizations. I'm thinking of both internal fraud (employees issuing credits to themselves on their cards) and external fraud (fraudulent card usage and chargebacks). I've seen this function reside in IT, internal audit and treasury groups. I'm wondering current best practices...

thanks for your help, Anand


Philip Mikal
Title: Executive
Company: Small Company
LinkedIn Profile
(Executive, Small Company) |

The best practice is to establish a Risk Management department. In absence of this, better examples have this function in Product and to a lesser extent Operations, which includes overlap with Customer Service.

Having payment risk managed by IT or Finance limits a holistic view of payment behavior and encourages too narrow of a scope in the tools used to manage this risk appropriately.

Ernie Humphrey CTP
Title: VP, Thought Leadership
Company: Stampli
LinkedIn Profile
(VP, Thought Leadership, Stampli) |

There are emerging payment technologies that can remove most sources of card payment fraud which will be coming to the U.S. soon, stay tuned. This technology exists in Europe and even Canada.


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