Monday, May 7, 2007

Tips of anti-fraud for online merchants

According to research firm Financial Insights, online transactions that accept credit card payments could cost businesses as much as $60 billion in 2005. Credit card fraud is a kind of cheat where a merchant is "scammed" into releasing merchandise or rendering services, believing that a credit card account will provide payment for goods/services. The merchant who accept Visa/Mastercard later learns that they will not be paid, or the payment they received will be reclaimed back by the card's issuing bank.

Tips of anti-fraud for online merchants:

  1. If you accept Visa/Mastercard as payment processor, check the mailing address, postal or zip code, and phone number of the buyer to make sure that they are not cheat.
  2. Do not process the order if the buyer cannot be contacted by phone or the phone number is unreachable.
  3. Ensure you check the email address against their name on the credit card and reject to process orders from free email domains unless you have the proof of buyer’s identity.
  4. Verify their address if they are available by using address verification services before accept credit card payments.

No comments: