Protecting Your Business From Credit Card
Fraud
Credit cards
are used as forms of payments now more than ever. There are also more online
businesses and most of these businesses accept credit card payments. Therefore,
protecting your online business from credit card fraud is vital. For businesses
that are offline, the challenges of accepting credit cards as payment can
be the same. Fraud is such an ugly word and we want to avoid it at all costs.
Thankfully, there are steps you can take, whether your business is online
or offline, that will help to eliminate your risk of being a victim.
Steps For Online Business Owners
Although most consumers think being a victim of credit card fraud, particularly
when purchasing a product online, it is actually much more likely that the
merchant will be the victim rather than the consumer. Here are some tips
to help you avoid this.
First, always verify that the address the consumer has given you is correct.
Your merchant account probably offers an Address Verification System that
will verify that the address you have been given matches the billing address
of the cardholder.
If you're shipping a product to a consumer, make sure the shipping address
matches the billing address. If it does not, you probably should investigate
the transaction.
Be leery of unusual orders. Since a thief would have no idea of the consumers
purchasing history with you, if something gets ordered that is completely
out of the ordinary check it out. Phone the customer if you can. Even if
it's legitimate, they should be grateful that you called.
Take as much information from the buyer as you can when they are filling
out the order form. In addition to their name, address, and telephone number,
ask for the name of the bank that the card is issued from as well as the
3 or 4 security digits that all cards have now.
State on your web site that you have anti fraud devices in place and operating
at all times. This will give the thief pause before entering your web page.
Steps For Offline Business Owners
Since you are actually going to see the person that is trying to use the
credit card, your chances of being a victim of fraud are diminished, but
problems can still happen. Here are some tips to help protect you and your
business from credit card fraud.
Never take a credit card without getting identification. Check the name and
signature to see if they match. This will not offend most customers who are
on the up and up. Most will even be grateful.
Check the credit card for forgery by knowing what characteristics are found
on legitimate cards. Many cards now contain a hologram that changes color
in the light. Check the signature panel to make sure the signature cannot
be erased. If it can, it's fake. Look for the magnetic strip and make sure
it is intact.
You should also use the Address Verification Service. This will help you
as well. |
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