Steps For Online Business OwnersMost people think of consumers first as victims of credit card fraud, particularly
when purchasing products online. In actuality, the merchant is much more likely to be the victim. Credit card holders are
usually protected from anything in excess of $50 of fraud liability, so the remainder comes from whoever interacted with the
thiefthe one who took the transaction. Here are some tips to help you avoid this. First, always verify the customers
addressthis is information that a credit card thief may not know. Your merchant account probably offers an Address
Verification System that will verify that the address you have been given matches the billing address of the cardholder. If
you're shipping a product to a customer, make sure the shipping address matches the billing address. If it does not, you
probably should investigate the transaction.
Check It Out First
Be wary of unusual orders. Since a thief has no idea of the customers purchasing history with you, theres a high
likelihood of his buying something completely out of the ordinary. Check it out. Phone the customer if you can. Even if it
turns out to be legitimate, most people will be grateful that you called.
Take as much information from the buyer as you can when they are filling out the order form. In addition to their name,
address, and telephone number, ask for the name of the bank that issued the card, as well as the 3 or 4 security digits that
all cards have now.
State on your web site that you have anti-fraud devices in place and operating at all times. This will give the thief
pause before entering your web page.
Steps For Offline Business Owners
Since you are actually going to see the person with the credit card, your chances of becoming a victim of fraud are
somewhat diminished, but it can still happen. Here are some tips to help protect you and your business from credit card
fraud.
Never take a credit card without getting identification. Check the name and signature to be sure they match. This will not
offend most customers who are on the up and up. Many will even be grateful.
Ask For Identification
Check the credit card for forgery by knowing what characteristics are found on legitimate cards. Many cards now contain a
hologram that changes color in the light. Check the signature panel to make sure the signature cannot be erased. If it can,
it's fake. Look for the magnetic strip and make sure it is intact. Use the Address Verification Service as well.
Good Business Practice
Of course, risk of theft and fraud have always been a part of doing business. But credit card fraud is particularly
widespread, so its just good business practice to take these simple steps to protect yourself and your business.
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