Credit cards have become popular to due to convenience of having not to carry large cash and wide acceptability. They are the most popular form of payment on the Internet. Many online businesses readily accept credit card payments. But this method of payment is also susceptible to fraud. Hence you should protect your business from credit card fraud. Follow the steps outlined below to protect your business from being defrauded by unscrupulous customers.
Steps For Online Business Owners
Generally many consumers consider that credit card online processing fraud affects the buyers more; the fact is that the seller is more likely to fall prey to such a fraud instead of the buyer. These tips will prevent you from becoming a victim.
First you should always cross-check the address given by the buyer. Find out its authenticity. Your merchant account in all likelihood will provide you an Address Verification System to check the address given by the buyer matches with the billing address of the cardholder.
The shipping address should tally with the billing address provided by the customer. If there is a mismatch, investigate the transaction and do not ship the goods.
Be careful with the unusual orders. As the fraudster is unaware of the purchasing history of the customer on your site, check out if something unusual is ordered. Call up the customer if possible. They can either confirm or reject the transaction.
Ask the customer for the maximum information while filling the order form. Besides name, address, and telephone number, get the name of the card issuing bank and 3 or 4 security digits found at the back of all the cards.
Mention clearly on the web site that it is protected by anti fraud devices that are working all round the day. This will make the fraudster rethink before entering the web site.
Steps For Offline Business Owners
The risks of fraud in this case are far lower as you are more likely to see the person who is using the credit card. But in spite of all the precautions, frauds can still take place. These tips will protect you against credit card fraud.
Do not take a credit card without properly identifying the owner. Compare the name and signature to find out if they match. Most customers will not be irked by this as they know it is for their benefit.
Find out if the credit card is genuine by looking out for the characteristics present on the genuine ones. Today’s cards have a hologram, whose color changes when exposed to the light. Check the signature panel to ensure the signature cannot be wiped away. In fake card, the signature will be erased. Check if the magnetic strip is not tampered with.
Using the Address Verification Service will also be helpful.