Credit card fraud is a tough challenge faced by credit card companies and companies accepting credit card payments. The challenge is more daunting for e-commerce companies and mail order companies where the card info is supplied by a person who may or might not be the legitimate client. Brick-and-mortar store companies, on the other hand, use credit card swipes and the client is present during the transaction. Though this does not eliminate the possibility of fraud, it reduces it.
Occasionally, bank that issues the card provides some coverage for a Retailer’s loss if the company has followed all the bank’s card approval and processing rules rigorously. Even then, the company is not clear of loss since it will see cost backs. Credit card processing companies employ fraud protection measures but you also need to do your bit to decrease the chance of fraud. Here Are a Few Tips:
Verify billing and shipping address
Be wary of orders with different billing and shipping addresses. Of Course, if a regular customer does so as a standard, it ought to be fine. Otherwise, recheck with the client. It does not hurt and saves you from possible loss.
Verify addresses with websites
You can check the addresses and contact numbers of customers using Online phone directories like white pages, any who, and similar websites.
Be cautious of free email ids
Most debit and credit card fraudsters use free email accounts – Yahoo, Gmail, Hotmail, etc That does not necessarily make the purchase suspect however, you ought to be on guard.
Document every detail of this trade
Store the IP address of clients when they are surfing your website or placing orders. Record the time and date of the trip, telephone conversation details if any and Insert the caller ID and any other information to the sequence details. Should you get caught in a card fraud case; this documentation will be quite helpful.
Be cautious of first-time clients placing high amount orders
If a new customer puts a prtship carding large order the first time around itself, it is suspicious. If they also request overnight delivery services, you need to call the client and make sure she placed the order.
Ask for CVV number from the sequence form
Your order form should ask clients to enter the Card Verification Value CVV number that is printed on the back of the card. Your billing applications should keep this value and move it to the credit card processor for verification. This lowers the risk of fraud because scammers typically only have the credit card number to decide on.
Caution and adherence to appropriate process does not eliminate credit card Fraud but is definitely helpful in mitigating it. If you follow the aforementioned guidelines, you should have the ability to protect your organization and your Customers to some degree.