The instances of fraudulent credit card usage each year costs millions of dollars for online businesses. Since they cannot study the customer and look for added identification by interacting with the person face-to-face, it is harder to really identify when a fraudulent purchase is done on an online credit card. But with some added effort and willingness, the online stores can largely reduce the risk that they have for fraudulent purchases. They just have to do a few of the following.
If the person who uses an online credit card has a shipping address that is not the same as his or her billing address, call before confirming his or her order. This is especially true if the shipping address is not in the country.
You must always ask the online credit card user to give you a valid telephone number when they order. See to it that the phone’s area code matches the one that is on the billing address. Try to call the customer so you can confirm this number.
Always be wary of unusual orders like strangely huge orders or big orders of a single product. If you think that the order is suspicious, do some added research to determine if you are being fooled or not.
There are other transactions that you have to pay close attention to. These are the ones that make use of more than one online credit card but the shipping address is the same. Or it can be a lot of orders that are done with one credit card but they are done within a short time from each other.
Double check the IP address of the person who is doing the orders so that you can find out where he or she is located. Be mindful of international orders that come from countries that have a high incidence of fraud. These countries include Nigeria, Lithuania, and Turkey.
A scammer is more likely to use an email address that is untraceable and coming from a free service online. Always request the customer to give you an ISP or an email address that is domain-based so you can trace it back to where he or she is located.
You can also make use of an address verification feature that is mostly provided by a lot of payment processors online. This lets you determine whether the information given on the order is the same as the one that the bank has for that online credit card. There are payment services that have plenty of tools that can be used to combat online fraud.
If you are unsure about an order, contact the customer and ask him or her to send you a copy of their driver’s license or their passport so you can verify their identity.
Your website should have your anti-fraud policy prominently displayed. Inform potential fraudulent customers that you are ready to persecute them in the fullest extent given by the law if they order a fraudulent purchase from you.
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