Companies need to verify credit card information to make sure the credit card number matches the identity of the person using it, states Experian. This helps to reduce fraud and ensure that businesses are paid for products and services.
Experian has a large database that helps businesses verify credit cards, allowing online retailers to receive a match before they process an order. Using a credit card without the permission of a cardholder is known as credit card fraud, states Bank of America. Banks work with consumers to help eliminate charges incurred due to fraud, so businesses that verify credit cards before processing payments do not miss out on profits.