10 Things That Online Merchants Can Do For Credit Card Fraud Protection

By: Gen Wright


The world of online shopping has broadened by many times in the past few years, and the number of transactions using credit cards has increased massively. If you are online agent, what can you do about credit card fraud? Well, every online merchant is exposed to the risk of fraudulent transactions, but with a few precautions, you can certainly offset some of them. Listed below are some seriously straight forward tips that can help you immensely with credit card fraud protection and save you from chargebacks.

1. Avoid credit card transactions without info: This is one of the most common things that online merchants need to check. Do not verify any transaction that is not supplied with all information about the credit card holder and his background. This can give certain protection against credit card fraud, at least from international customers.
2. Spot the high risk transactions: There are certain countries, which are known for generating risky and fraudulent transactions. You can check these countries online, and set filters in your payment systems for customers coming from those countries. Unless you have all the details, avoid taking forward an order.
3. Take time to understand your customer: what to do about credit card fraud, especially when you have doubtful transactions? It has been observed in many cases that some transactions look riskier than others. In such a case, the best thing that you can do is to hold the transaction. Instead of telling the customer about your doubts, use your customer feedback system to obtain information about the credit card and shipping address. Authentic customers will never complain about such enquiries and will surely cooperate with the compliance rules.
4. Opt for CVC2 and CVV2: In internet based credit card transactions, it is essential that your system demands CVC2 and CVV2, which are found with MasterCard® and Visa respectively. This can surely protect credit card fraud to an extent.
5. Check for large deals: In case, you find a customer buying all expensive items from your portal, you need to see if his purchases are genuine. The simplest way to check is to confirm his buying pattern and the shipping location of his order.
6. Avoid second authorization attempts: In case, you do not get authorization for a transaction, do not take second attempts.
7. Record all transactions: For proper credit card fraud management, you need to record all transactions in your system, unless you have received the payment and dispatched the order.
8. Be clear with your returning policy: As an online merchant, you need to be exceedingly clear about your returning policy. There are some customers, who often can't stop fidgeting about an order and easily look for chargebacks, in case they are not satisfied. For such customers, you need to have a particular page where you have all the terms and conditions mentioned with utmost clarity.
9. Talk to the credit card company: In case you are suspicious about a transaction, do not hesitate to call the credit card agency to confirm the card holder details.
10. Lastly, do not opt for installment based payments, unless you are fully confident about the customer and his credit card. Take help from Bin database, for complete protection against credit card fraud.

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For more information on how you as a business entity can protect against such like losses check out credit card fraud protection or ow to protect against credit card fraud.

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