As an online merchant, how can I protect my business from credit card fraud?
Question:
Answer:
The bottom line is that you CANNOT protect yourself 100%.
When the card is not presented in a face to face transaction, the merchant assumes the risk for a chargeback, regardless of delivery method or proof of delivery, address check, CCV or anything else. Domestic or foreign. Phone order, mail order, internet order.
Read your merchant agreement carefully. It is a risk and a cost of doing business.
You should just funnel all transactions through yoru bank
First of all, set your online business up as an https instead of an http- for example- https://www.yourwebsite.com. This gurantees merchant providers there are not phishing programs running on your site. You should also work with a merchant provider that lets you use their online system like Chase Paymentech, they offer options that require customers to give the three digit security code on the back of the card. Also, in the banking world we commit to KYC, Know Your Customer. Impliment similar policies to your business to prevent further issues.
A lot of companies are interested in the topic. I would consider joining a local business group since that's a topic they'd probably address at a "learning luncheon." Your bank should be a source of info. See also:
http://www.auctionbytes.com/cab/abu/y203...
http://www.directleap.com/fraud-preventi...
From VISA: http://www.visafulfillment.com/visamerch...
From MasterCard:
http://www.mastercard.com/us/merchant/se...
Most credit card processing providers implement fraud prevention measures such as address verification, CVV2 (Card Security Number Confirmation), and the most recent, 3d secure code.
You can protect yourself by:
"Call the customer to verify the order first before any shipping occurs. Fraudsters order numerous items that they can't keep track of what they purchased online or even remember the information they provided for that transaction."
check out the article below if you have time.
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