How to Avoid Credit Card Fraud on your Website
If you own a business on the Internet, you’ve probably come across credit card fraud more than you think. Credit card fraud online is a big deal but if you know how to prevent with a few tips that I’ll provide, you can cut down your credit card fraud by almost 90%.
Require a Verification Number — All credit cards have something called a verification number or CVV. This is the number on the back of the credit card that most major credit card carriers have such as Visa and MasterCard. If you require that a user puts in the CVV when they make their purchase, this will prevent many users from using fraudulent cards simply based on the fact that they will not have the credit card in their hands.
Have a good verification system — Make sure that the credit card merchant that you work will check up on the address of the card as well as the zip code. Some credit card merchant software won’t be as sophisticated as others. You shouldn’t be cheap with a verification system because you may find that being cheap is going to hurt you in the long run with your orders.
Contact the customer– if you feel that the order looks suspicious, try and contact the customer with the phone number they live. If it’s a scammer, they will most likely not pick up the phone. This is a big red flag if the phone call is never answered. If you find that the customer doesn’t return your call after three attempts, it would be best to just cancel the order for your own good.
Look at shipping address — when the customer places their order, look at where the order is going to be shipped to. If the shipping address doesn’t match up with the credit card address, this is another big red flag. Once again, you’ll want to contact the customer to verify all this information.
Credit card fraud is big online and no matter what kind of company run, there are always going to be people trying to scam you. It happens to the biggest companies and the smallest. Try your best to implement some of the steps that I mentioned above. It’s not going to prevent fraud 100% but I can assure you that you’ll be able to cut down on fraud that would have happened.
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