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 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, 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 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.
Author-Bio: 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 http://www.credit-card-debt-consolidation.net
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