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Credit Card Fraud - Strategies to Ward It Off to Protect Your Business and Customers Against Loss

By: Aeronx Mc Mall

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The prospect of credit card fraud is always looming over credit card companies and organizations that accept card payments. The challenge is more daunting for e-commerce website owners and mail order businesses where the credit card information is provided by the individual who may or may not be the legitimate card holder. Brick-and-mortar store businesses, have machines to swipe cards and the customer is available during the transaction. Though this does not eradicate the possibility of getting scammed, it does reduce it to some extent.

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). 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.

At times, bank issuing the card affords some insurance to merchants if they have precisely followed all of the bank's card acceptance and processing regulations. Even then, the business still has charge backs to deal with. Credit card processing services employ fraud security measures to prevent fraud but you must also do your own bit to reduce the risk of credit card fraud. Here are some tips:

Assess orders for complete data

Do not accept purchases if all the mandatory values in the form are not filled by the client. An address authentication via the credit card processing service's AVS (Address Verification System) service is effective as most dubious transactions fail this test.

Confirm billing and delivery address

Be cautious of orders with different delivery and billing addresses. When a regular customer does this as a norm, it should be fine. Otherwise, call the customer and confirm. It doesn't take much time and shields you from future trouble.

Corroborate addresses from websites

You can check the addresses and contact numbers of clients 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 use free of cost email accounts like Hotmail, Gmail, Yahoo, etc. Though this is also the case with authentic clients,.

Save every detail of the sale

Record the IP address of customers when they are browsing your e-commerce website or placing orders. Also document the date and time of the visit, and phone chat details if any. Add the caller ID and any other facts to the order details. By any chance, if this is a credit card fraud case, the collected information will prove useful.

Be cautious of new customers placing orders of high amount

If a first-time client places a large first order, exercise caution. If they also ask for express delivery services, you should call the customer and make sure she knows about the order.

Ask for CVV number when placing the order

Your order form should ask customers to enter the Card Verification Value (CVV) number that is printed on the reverse of credit cards. Your billing application should record this number and pass it to the credit card processor for verification. Fraudsters may not know the CVV number if they don't have access to the card directly.

Caution and observance of processing rules do not eliminate credit card scam but are definitely successful in alleviating it. Follow the aforementioned tips to protect your business and your customers.

Article Source: http://depositarticles.com/

Daljeet Sidhu. Credit card processing quotes. Cheap Credit Card Processing advice. Buy leads.

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