3 Ways To Avoid, Prevent And Stop Credit Card Fraud

By: Gen Wright


Credit card fraud has been on the rise, creating inconvenience for all parties accept fraudsters who are happily feeding off these unfortunate people's money. The good news is there are now improved ways to avoid, prevent and stop credit card frauds. Don't allow yourself to be a target; actions must be taken to control this nuisance of a problem.

If you are handling an offline business, here are some security red flags to stop credit card fraud before it happens. When asked for personal details such as their last name or ZIP code, the customer shows delayed responses or hesitation. A transaction deserves a closer look if the ship to an address is different from the billing address or if the goods are shipped to a post office box instead of the billing address. Merchants should keep an eye out for rushed orders or random oversized orders. Fraudsters are just concerned with obtaining goods as soon as possible and resell them without being caught, so be alert for all these red flags and prevent credit card frauds from happening right under your noses.

Next, let's talk about how to prevent credit card fraud online. The liability for a credit card fraud is governed by the particulars of the transaction. If a merchant did not get all the required information, they would need to return the funds to the financial institution. Merchants need to abide by the rules to avoid credit card fraud, following the recommended procedures given by payment processor and credit card companies, to protect your merchant account. If an order is suspected of fraudulence, the registration service should be contacted, so that the total number of charge backs can be reduced.

Some other tips on how to prevent credit card fraud is by choosing a reliable credit card processing company. Do your research and choose a company that does not have a history of identity theft or defalcation. An anti-fraud policy should be clearly shown on your website, including the policy that fraudsters will be prosecuted to the fullest extent of the law.

In avoiding credit card fraud, it is to your benefit to invest in top notch security protection software and keep it updated. Hackers know how to break through vulnerable areas and this could be costly to you. Another way to prevent credit card fraud is to delete credit card numbers; do not store them. If there is a need to store them for whatever reason, make sure that it is encrypted as hackers can easily break into databases to obtain the information. Employees should not have access to a customer's information and all transactions should be secure by using installed software, preventing credit card fraud.

To prevent credit card frauds, some merchants have a fraud scoring system where points are given for different elements of a transaction. This is to calculate a number to determine the likelihood of credit card fraud. Other factors to be taken into considerations are previous orders, length of time as a customer and so on. The merchant can decide upon what point levels are suspected of fraudulence.

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

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