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
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
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
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
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
You should also use the Address Verification Service. This will
help you as well.
About The Author: Keith Baxter made it his mission after
college to educate as many people as possible to the advantages
and disadvantages of credit through a widespread re-education
initiative. You can find out more about Keith and what he's up
to at www.credit-card-debt-consolidation.net