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Q.How can a merchant limit Credit Card Fraud?
A.Online fraud and identity theft is increasing at an alarming rate. While its impractical and impossible to eliminate the possibility of credit card fraud, there are various measures e-commerce sites can implement to reduce the risk. Some are relatively easy, while others can be a bit time consuming.
- You can require the customer to input a credit card verification number and their telephone number. Since most fraudulent transactions result from stolen card numbers rather than the actual theft of a card, a customer that supplies this number is much more likely to be in possession of the credit card.
- You can cross check whether a phone number is valid and located within the same zip code to which a product is being shipped. freeality, The Ultimates, and AnyWho can assist you in this endeavor.
- You can use a credit card processor that offers an address verification service (AVS), which verifies that the cardholder's address and zip code match the information at the card-issuing bank.
- You can compare the bill to and ship to addresses and if different consider calling, or emailing, the customer to confirm the order and to request additional information. You may also ask the customer to provide the name of the card issuing bank, and the card issuing bank's telephone number.
- You can call the credit card issuing bank to verify the validity of the credit card.
- You can consider checking if the IP address matches the email address and physical billing address of the customer. You can use the web site http://www.all-nettools.com/to check IP addresses.
- Finally, you can do a cost benefit analysis on the implementation of a fraud-prevention service such as Cybersource.com, ClearCommerce.com, or Cardservice International (Cardservice.com) which have monitoring services which automatically flag suspicious activity.
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