How to Prevent Online Credit Card Fraud As a Merchant
Process credit card information manually instead of automatically., Use an Address Verification System (AVS) to prevent credit card fraud., Collect Card Verification Value (CVV) information., Check for anonymous email addresses., Look up the IP...
Step-by-Step Guide
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Step 1: Process credit card information manually instead of automatically.
Some merchant services can be set to automatically process credit cards.
By manually processing the credit card orders, you have the opportunity to check the details of the order and verify anything that seems suspicious. -
Step 2: Use an Address Verification System (AVS) to prevent credit card fraud.
An AVS verifies a cardholder's identity by checking its billing address, zip code and phone number to the one on file with the issuing bank.
An AVS is usually provided by through your merchant service account.
AVS matches do not guarantee that the purchase is legitimate, just as non-matches do not automatically mean it is fraud.
Fraudsters can obtain correct billing information and legitimate customers may enter address information incorrectly.
You should investigate further if you have a non-match on AVS. , Merchants can require a customer to provide their card's security code for purchases.
This usually indicates that the card is in the possession of the user.
If the CVV or CVV2 is incorrect, it may indicate fraud, but sometimes customers enter the number incorrectly.
You can contact the customer to verify the purchase.
Some merchant provider programs automatically reject incorrect CVV codes, but others just note it and pass it along to the merchant for the final decision. , Anonymous email addresses are not connected to any specific email account.
Fraudsters can use them to hide their identity.
Legitimate customers often use anonymous email address when placing online orders to cut down on spam. , If you are suspicious of a purchase, you can use risk tools (often provided by your merchant host) to collect IP addresses and use look up tools to determine if the address seems legitimate.
IP addresses can be close in proximity to a customer's address, but often they are not, so use caution when employing this tool.
Become suspicious if an IP address shows up as being in a different country from the cardholder's billing address. , You can manually verify a customer's billing address by calling your merchant provider or by calling the issuing bank.
Sometimes you will get correct address verification from the bank when it was not approved via an AVS.
You can also request that the bank make a courtesy call to the customer to verify the purchase.
In this case, the bank will not provide any details to you.
So, you may be left wondering about the result unless the customer contacts you. , This is sometimes the simplest and most effective way to verify a purchase.
Contact the customer through the billing phone number to verify the purchase.
Often customers are pleased with the individual service.
If you can't contact them through the billing phone number, you can email them and ask for the billing phone number.
Be wary of responses through email, because it is easy for a fraudster to pose as the customer. -
Step 3: Collect Card Verification Value (CVV) information.
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Step 4: Check for anonymous email addresses.
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Step 5: Look up the IP address of the purchaser.
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Step 6: Call your merchant provider and/or the customer's issuing bank.
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Step 7: Contact with the customer.
Detailed Guide
Some merchant services can be set to automatically process credit cards.
By manually processing the credit card orders, you have the opportunity to check the details of the order and verify anything that seems suspicious.
An AVS verifies a cardholder's identity by checking its billing address, zip code and phone number to the one on file with the issuing bank.
An AVS is usually provided by through your merchant service account.
AVS matches do not guarantee that the purchase is legitimate, just as non-matches do not automatically mean it is fraud.
Fraudsters can obtain correct billing information and legitimate customers may enter address information incorrectly.
You should investigate further if you have a non-match on AVS. , Merchants can require a customer to provide their card's security code for purchases.
This usually indicates that the card is in the possession of the user.
If the CVV or CVV2 is incorrect, it may indicate fraud, but sometimes customers enter the number incorrectly.
You can contact the customer to verify the purchase.
Some merchant provider programs automatically reject incorrect CVV codes, but others just note it and pass it along to the merchant for the final decision. , Anonymous email addresses are not connected to any specific email account.
Fraudsters can use them to hide their identity.
Legitimate customers often use anonymous email address when placing online orders to cut down on spam. , If you are suspicious of a purchase, you can use risk tools (often provided by your merchant host) to collect IP addresses and use look up tools to determine if the address seems legitimate.
IP addresses can be close in proximity to a customer's address, but often they are not, so use caution when employing this tool.
Become suspicious if an IP address shows up as being in a different country from the cardholder's billing address. , You can manually verify a customer's billing address by calling your merchant provider or by calling the issuing bank.
Sometimes you will get correct address verification from the bank when it was not approved via an AVS.
You can also request that the bank make a courtesy call to the customer to verify the purchase.
In this case, the bank will not provide any details to you.
So, you may be left wondering about the result unless the customer contacts you. , This is sometimes the simplest and most effective way to verify a purchase.
Contact the customer through the billing phone number to verify the purchase.
Often customers are pleased with the individual service.
If you can't contact them through the billing phone number, you can email them and ask for the billing phone number.
Be wary of responses through email, because it is easy for a fraudster to pose as the customer.
About the Author
Denise Williams
Committed to making DIY projects accessible and understandable for everyone.
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