As there is a vast advancement in the E-commerce technology, the use of credit cards has grown up. The credit card has become the crucial mode of payment so with the rise in the credit card transactions, the credit card frauds have also become frequent now-a-days. Thus, an improved fraud detection system has become essential to maintain the reliability of the payment system. The criterion is to assure secured transactions for credit card owners so that they can make electronic payment safely for the services and goods which are provided on internet.