What security features can help Even Hotels franchisees combat fraud?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.7 Data Security Measures; Fraud. Security features such as CAPTCHA, velocity filters, the Address Verification Service, and requiring a Card Verification Code for Card Not Present Transactions can help combat fraud.
Using AVS when submitting Authorization requests for Card Not Present Transactions can help you identify potentially fraudulent transactions and can help lower Card Organization interchange rates, but it does not guarantee a transaction is valid and the AVS response does not impact whether an Authorization request is approved or denied.
We may charge you an AVS fee for any AVS request you submit, even if we are not able to provide a response to the request.
You are responsible for all Chargebacks, Third Party Based Fees, Servicers Fees, and other amounts arising from fraudulent activity processed through your Merchant Systems and/or your Merchant Account (regardless of any AVS response that you receive).
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, several security features can assist franchisees in combating fraud. These include CAPTCHA, velocity filters, the Address Verification Service (AVS), and requiring a Card Verification Code for Card Not Present Transactions. Using AVS when submitting Authorization requests for Card Not Present Transactions can help identify potentially fraudulent transactions and can help lower Card Organization interchange rates. However, the FDD clarifies that using AVS does not guarantee a transaction is valid, and the AVS response does not impact whether an Authorization request is approved or denied.
Even Hotels franchisees should note that they may incur an AVS fee for any AVS request submitted, regardless of whether a response is provided. Ultimately, the franchisee is responsible for all Chargebacks, Third Party Based Fees, Servicers Fees, and other amounts arising from fraudulent activity processed through their Merchant Systems and/or their Merchant Account, irrespective of any AVS response received.
This means that while these security features can help mitigate fraud, they do not eliminate the risk entirely. Franchisees must remain vigilant and implement comprehensive security protocols to protect themselves from financial losses due to fraudulent activities. It is also important to stay informed about the latest security practices and updates from IHG to maintain a robust defense against fraud.