Velocity of use tracks how often a specific data element — a credit card, an address — gets used within a set time window, on the theory that the higher the use count on a single data element in a defined period, the higher the risk of the order actually being fraud.
Three components of the check
- Data elements: credit card numbers, addresses, phone numbers, email addresses, account numbers
- Count: the number of transaction attempts on that element
- Time interval: the window being measured — 24 hours, for instance
Implementation notes
- Normalize address data so formatting differences don't break matching
- Log every transaction attempt, not just completed orders
- Keep at least 12–18 months of history
- Decide between simple pass/fail or a graduated risk scale
- Third-party services combining data across merchants catch more than any single merchant's own data can
Real thresholds, by product category
- Printer supplies: flag 3+ orders in a single day
- Laptops: flag multiple orders in a day
- Jewelry: flag 2+ orders in a day
- Cell phone recharges: flag multiple recharges in a week
When a transaction fails a velocity check inside a 24-hour window, cancel or hold the original order and validate the pattern before rejecting outright.