BAD CREDIT CASH LOANS AND FINANCING: Unique Content Article: Credit Card Fraud - Techniques To Ward It Off To Protect Your Business And Customers Against Loss

Credit Card Fraud - Techniques To Ward It Off To Protect Your Business And Customers Against Loss

by Daljeet Sidhu

The likelihood of credit card fraud constantly haunts credit card companies and merchants that accept card payments. The problem is more difficult for e-commerce businesses and mail order businesses where the credit card information is provided by someone who may or may not be the lawful card holder. Retail store businesses, have machines to swipe cards and the customer is present during the transaction. Though this does not do away with the possibility of getting conned, it does decrease it to some extent.

According to the Javelin Strategy & Research, "Identity Fraud Survey Report," February 2010, the number of U.S. identity theft victims rose 12% in 2009 and the annual fraud amount equaled $48 billion. Credit and debit card fraud is the No.1 fear of U.S. residents already weighed down by the global financial crisis. (Source: Unisys Security Index: United States, March 2009).

At times, bank issuing the card affords some insurance to merchants if they have strictly adhered to all of the bank's card acceptance and processing specifications. In spite of that, the business still has charge backs to deal with. Credit card processing services employ fraud protection measures to prevent fraud but you must also do your own bit to reduce the risk of credit card fraud. Here are some tips:

Assess orders for full facts

Do not accept purchases if all the necessary values are not provided by the buyer. An address verification via the credit card processing service's AVS (Address Verification System) service is helpful as most fraudulent transactions don't pass this test.

Verify billing and delivery address

Be suspicious of orders with dissimilar shipping and billing addresses. If this is the usual procedure followed by an existing customer, it isn't worrying. In other cases, recheck with the customer. It doesn't take much time and saves you from future trouble.

Verify addresses from websites

Corroborate the addresses and contact numbers of clients using online phone directory websites such as anywho.com, whitepages.com, and others.

Be suspicious of free email ids

Most credit or debit card fraudsters use free of cost email accounts like Gmail, Yahoo, Hotmail, etc. Though these email accounts are also popular with genuine customers,.

Record every detail of the transaction

Track the IP address of customers when they are browsing your e-commerce website or placing orders. Also record the date and time of the visit, and phone chat particulars if any. Add the caller ID and any other data to the order information. If you do get entangled in a credit card fraud situation, this documentation will prove useful.

Be suspicious of new buyers placing orders of high value

If a first-time customer places a large first order, it's suspicious. If they also ask for overnight delivery services, you should call the customer and make sure she indeed placed the order.

Get the CVV number when placing the order

The purchase order form should ask customers to enter the Card Verification Value (CVV) number that is printed on the reverse of credit cards. Your billing software should record this number and pass it to the credit card processor for validation. Fraudsters may not know the CVV number if they don't have access to the card directly.

Caution and observance of processing rules do not eliminate credit card scam but are definitely beneficial in reducing it. Follow the aforesaid strategies to protect your business and your customers. - 41115

Daljeet Sidhu. Compare (http://www.tradeseam.com/smallbusiness/business-resources/get-free-quotes/852/Credit+Card+Processing) Credit Card Processing Rates. (http://www.tradeseam.com/smallbusiness/buying-guides/view-buying-guide/852/Credit+Card+Processing) Credit Card Processing for Small Business advice.
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New Unique Article!

Title: Credit Card Fraud - Techniques To Ward It Off To Protect Your Business And Customers Against Loss
Author: Daljeet Sidhu
Email: daljeet50@prajha.com
Keywords: credit card processing,merchant account,credit merchant account,merchant account credit card,credit card service,credit card,credit,ecommerce,online business,finance,financial,sales,small business,business
Word Count: 560
Category: Finance:Credit
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