Eight different ways Google Checkout prevents and protects you from fraudulent credit card transactions

Eight different ways Google Checkout prevents and protects you from fraudulent credit card transactions, reimburses you for eligible chargebacks and even fights on your behalf:

Google performs industry-standard Address Verification System (AVS) and Card Verification Value (CVV) checks to prevent credit card fraud.

The Address Verification System is used to verify the identity of the person claiming to own the credit card. The system will check the billing address of the credit card provided by the user with the address on file at the credit card company.

The Card Security Code (CSC), sometimes also called Card Verification Value or Code (CVV or CVC), is a security feature for credit card transactions, giving protection against credit card fraud.

Most debit and credit cards have two card security codes. The first, often called CVC1 or CVV1, is encoded in the magnetic stripe of the card and is used for in-person transactions. The second, known as CVV2 or CVC2, is used to secure “card not present” transactions occurring over the Internet, by mail, or over the phone.

As Google Checkout processes transactions over the internet I am assuming Google is using CVV2. The CVV2 is a 3 or 4 digit value printed on the card, but not available on the magnetic stripe. The number is generated when the card is issued, by encrypting the card number and expiry date under a key known only to the issuing bank. Supplying this code in a transaction is intended to verify that the customer has the card in their physical possession.

Online merchants who require the CVV2 in their transactions are forbidden from storing these details once the transaction is complete. This way, if a database of transactions is compromised, the CVV2 is not included, and the stolen credit card numbers are less useful.

Advanced risk modeling
Google employs advanced risk modeling to detect fraudulent transaction cues across Google services. Google also actively leverages external, cross-industry resources-such as worldwide fraud blacklists-to prevent fraudulent users from accessing Google Checkout in the first place. This is proactive prevention and is not used by most merchants on the internet.

Automatic fraud detection
Google proactively identifies and filters out fraudulent transactions. All fraudulent transactions are immediately cancelled after being detected. Any pending or in progress orders associated with the same credit card will also be cancelled to protect you.

Supplemental manual review
If a transaction appears to be high-risk, Google will restrict the order to protect you from shipping the order to a fraudulent buyer. During this time, our Google Checkout specialists will review the situation further, cancel the transaction if it’s fraudulent, or release it if it’s valid. We may also contact you directly as a backup precaution.

Information sharing
Google Checkout provides buyer verification information within the buyer’s order details to help you run your own fraud checks as needed. If you’re concerned about a particular order, or if you’re unable to contact the buyer with the information we provide, you have the option to cancel the order to avoid further risk.

Chargeback resolution
All merchants are covered by Chargeback Resolution Policy: our specialists will evaluate all chargebacks you receive through Google Checkout and, whenever possible, dispute them on your behalf.

Payment Guarantee Policy
As an additional benefit under Chargeback Resolution Policy, Google also guarantees payment for all transactions that are eligible for Google’s Payment Guarantee Policy (see below for eligibility). Google will reimburse you within a week of receiving and reviewing the required information.

For all eligible transactions, Google will completely reimburse you for any chargebacks resulting from claims of unauthorized purchases and non-receipt of goods. To qualify for this additional protection, you must meet the following criteria:

* You shipped the order to the buyer’s shipping address (as specified in the Google Checkout Merchant Center or the Google Checkout API call) according to the shipping method and timeframe agreed upon when the order was placed.
* You provide a tracking number or other proof of shipping for transactions less than US$250.
* You provide proof of delivery with the buyer’s signature for transactions greater then US$250
* You receive a request from Google for supporting documentation and provide this information within ten business days.
* You’re currently displaying a clear return policy on your website. (Learn more)
* The disputed order doesn’t involve intangible goods.

At a minimum, Google will reimburse you for eligible chargebacks up to $10,000 per year. If your gross Google Checkout sales exceed $1 million per year, Google will protect you for 1% of those sales. For example, if your Google Checkout sales are $2 million, they will protect you for up to $20,000.