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In modern retail market, electronic commerce has rapidly gained a lot of attention and also provides instantaneous transactions. In electronic commerce, credit card has become the most important means of payment due to fast development in information technology around the world. The objective of the paper is to develop a credit card fraud detection system in commercial sites. It is designed as a web based application in which transition state model was adopted for the research process. PHP (Hypertext Pre-Processor) is used for application development and MySQL to generate databases. The result shows that the system performance is performing to its task and therefore recommended to electronic commerce owners to ensure data integrity and security of their customers.

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