Credit Card Fraud - Techniques To Minimize It To Protect Your Business And Customers Against Loss
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The possibility of credit card fraud constantly haunts credit card companies and organizations that accept card payments. The challenge is worse for e-commerce website owners and mail order businesses where the card cannot be checked physically and you cannot be sure that you are dealing with the rightful card holder. Brick-and-mortar store businesses, have machines to swipe cards and the customer is on hand during the transaction. Though this does not do away with the possibility of getting conned, it does decrease it to some extent.
According to the Javelin Strategy & Research, "Identity Fraud Survey Report," February 2010, the number of U.S. identity theft victims rose 12% in 2009 and the annual fraud amount equaled $48 billion. Credit and debit card fraud is the No.1 fear of U.S. residents caught in the global financial crisis. (Source: Unisys Security Index: United States, March 2009).
In some cases, bank issuing the card provides some insurance for a merchant's loss if the business has strictly conformed to all of the bank's card acceptance and processing rules. In spite of that, the business still has charge backs to deal with. Credit card processors implement secure technology and processes to prevent fraud but you must also make an effort to minimize the risk of credit card fraud. Here are some tips:
Appraise orders for complete information
Do not approve purchases if all the necessary fields in the form are not filled by the buyer. An address authentication via the credit card processing service's AVS (Address Verification System) service is effective as most fraudulent transactions fail this check.
Verify billing and shipping address
Be cautious of orders with different shipping and billing addresses. If this is the usual procedure followed by a regular buyer, it isn't worrying. In other cases, call the customer and confirm. It doesn't take much time and spares you from potential hassles.
Confirm addresses with websites
Confirm the addresses and contact numbers of clientele using web people search websites such as anywho.com, whitepages.com, and others.
Be cautious of free email ids
Most credit or debit card scammers rely on gratis email accounts like Hotmail, Gmail, Yahoo, etc. That doesn't necessarily make the order suspect but you should be on guard.
Save every detail of the purchase
Store the IP address of customers when they are surfing through your e-commerce website or placing orders. Also document the date and time of the visit, and phone chat details if any. Append the caller ID and any other facts to the order information. If you do get entangled in a credit card fraud situation, this data will prove useful.
Be cautious of new customers placing orders of high value
If a new buyer places a large first order, it's suspicious. If they also ask for express delivery services, you should call the customer and make sure she indeed placed the order.
Get the CVV number in the order form
The purchase order form should ask buyers to enter the Card Verification Value (CVV) number that is printed on the back of credit cards. Your invoicing software should store this number and pass it to the credit card processor for validation. Fraudsters may not know the CVV number if they don't have the card in hand.
Caution and adherence to process do not eradicate credit card fraud but are definitely successful in reducing it. Follow the aforementioned guidelines to protect your business and your customers.
Article Source: Articlelogy.com
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