Credit card fraud detection at merchant side using neural networks

With the growth and widespread of the internet the credit card payment industry has expanded rapidly during the course of time. Most of the companies and industries have transformed their business into online services to provide e-commerce, easy access and communication allowing their customers better efficiency and accessibility. This evolution is of great importance since it has credited towards increased efficiency, and profitability but it also has its own shortcomings. Along with this evolution comes a greater possibility of threats. One of the most crucial challenges in making business on the internet is that neither the card nor the cardholder needs to be present when the purchase is being made. This makes it impossible for the merchant to verify whether the customer making a purchase is the authentic cardholder or not. This makes it easy for a fraudster to carry out a fraudulent transaction anonymously.