Fraud & Risk Management
How do AVS and CVV checks work?
AVS, or Address Verification Service, compares the billing address provided during checkout with the address on file with the issuing bank. CVV checks verify the card security code printed on the card.
These checks help assess whether the person submitting the transaction has access to legitimate card details. Passing AVS or CVV checks does not guarantee a transaction is legitimate, but failing them may increase risk signals.
AVS and CVV usage is governed by card network rules and configured through the Easy Pay Direct gateway.
What are Velocity Checks and IP Geolocation Tools?
Velocity checks monitor how frequently transactions occur over a defined period, such as multiple transactions from the same card, device, or account within a short timeframe. IP geolocation tools evaluate where a transaction originates and whether it aligns with expected customer behavior.
These tools help identify unusual patterns that may indicate fraud or abuse. They do not block transactions automatically unless configured to do so.
Easy Pay Direct supports the use of these tools through The Easy Pay Direct Gateway, within approved processing rules.
How does Authentication like 3DS Work?
Authentication tools such as 3D Secure add an additional verification step during checkout to confirm the cardholder’s identity. This may involve a one-time passcode, biometric confirmation, or banking app approval.
3DS is designed to reduce fraud and can shift certain liability outcomes depending on the transaction and card network rules. Its use must be approved as part of the Merchant Account structure and is not appropriate for every transaction type.
Easy Pay Direct helps merchants understand whether authentication tools may be supported and how they fit into the payment flow.
How are Suspicious Transactions Evaluated?
Suspicious transactions are evaluated using a combination of automated risk checks and, in some cases, manual review. Evaluation typically looks at multiple signals together to estimate risk, since no single data point reliably confirms fraud on its own.
Common signals and patterns that may be reviewed include:
- Transaction velocity: repeated attempts in a short time, rapid retries, or multiple cards tested against the same checkout
- Amount and ticket patterns: unusually high orders, unusually low “test” transactions, or abnormal changes from your normal order size
- AVS and CVV results: mismatches or repeated failures can indicate higher risk
- Geographic inconsistencies: billing country, IP location, shipping address, and issuing country not aligning in expected ways
- Device and IP risk: suspicious devices, anonymous networks, high-risk IP ranges, or repeated attempts from the same source
- Customer history: first-time buyers vs returning customers, prior disputes, and repeat behavior patterns
- Order and fulfillment signals: rush shipping, mismatched names, unusual item combinations, or repeat orders with slight variations
Risk decisions can be made by automated systems, and depending on the setup, additional review can involve the acquiring bank or processor. Outcomes vary based on the overall context, the rules in place, and how closely activity aligns with what was approved during Underwriting.
Easy Pay Direct does not approve or decline individual transactions. However, we can help you interpret risk patterns and set fraud prevention tools in The Easy Pay Direct Gateway to reduce suspicious activity, such as velocity limits, block rules (by IP, email, card, or location), and other configurable controls. Final authorization decisions are still made through the banking partners and the customer’s issuing bank.