If you are a merchant, particularly someone who sells products online, the chances of your business being exposed to credit card fraud is highly likely. For many businesses, credit card fraud is a cost that they apportion into doing business and they may even account for it in how the price products ? similar to how a business may account for bad or doubtful debts. In the UK for example, government published statistics reveal that credit card fraud has went up from ?83.3m 10 years ago to ?504.8m just before the introduction of the chip and pin scheme. Chip and pin is a system where by a number is assigned to each credit card, meaning a thief has to do more than just fake a signature to complete a purchase with someone else's credit card. This has been said to have reduced fraud by 13% since its introduction.
With so many different types of credit card fraud, it is important to have a strategy to address each one. This article offers an insight into prevention methods for well known techniques of committing credit card fraud.
Card Not Present Fraud
CNP fraud is among the fastest rising category of fraud. The main reason for this is that it is becoming much harder to commit fraud in person, especially with the introduction of Chip and Pin. As online credit card fraud increases there are some measures that all merchants can take to ensure their associated costs of being exposed to online credit card fraud can be reduced.
● Call back customers to confirm orders. Although this is also a cost center, it could be used as a technique when the transaction appears somewhat out with the ordinary
● Pay attention to transactions where the delivery address and cardholder address are different
● AVS or CSC checking does not fully remove all risks associated with transactions, but it removes the ability for fraud to be done base solely on acquiring a/c details with out having the credit card in person.
Card Present Fraud
Card Present Fraud has become increasingly hard to commit, and as a result it is no longer associated with being a white collar crime as is often the case with CNP fraud. Despite this, face to face or swiped card fraud can still be an issue which retail merchants still have to deal with. Following certain protocols can help to limit the chances of you being affected, and ensure that your business is refunded by following the correct procedures.
● Ask your employees to look for people who may appear uncomfortable. They should not confront then based on that alone, but they should certainly be discreetly vigilant when they do.
● Check that the card number that is embossed matches the card number on the receipt. Pay particular attention to the last 4 digits if this has to be done discreetly and promptly. If they are different then it is important to act. In situations like this it is likely that skimming has taken place.
Finally, large orders from overseas countries with US Billing address are almost always fraud so it's better to have these customers pay via western union or bank wire. Many times fraudsters will order a large order using a stolen credit card and by the time you've discovered the card is stolen you already shiped the order.
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, asks 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.
Both Mike Knudtson & Veena Sharma are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mike Knudtson has sinced written about articles on various topics from Credit Card Fraud, Credit Cards and Finances. Mike Knudtson is the co-founder of the Fastcharge.com and the founder of merchant account provider Electronic Transfer, Inc.. He has helped thousands of merchants set up ret. Mike Knudtson's top article generates over 4400 views. to your Favourites.
Veena Sharma has sinced written about articles on various topics from Personal Desktop, Credit Cards and Biking. Did you find this article useful? For more useful tips and hints, points to ponder and keep in mind, techniques, and insights pertaining to Credit Cards, do please browse for more information at our websites.www.1morecard.com. Veena Sharma's top article generates over 2900 views. to your Favourites.