OK card not present merchants! It's that time of year again. The holiday seasons are coming and lots of people will be doing their Christmas shopping online this year. Good news for business. Also, good news for fraudsters who know you will be busy trying to fill orders and working on a strict deadline.
So, keep a few important factors in mind when processing a credit card.
Step 1. You know to check the billing address with what's on file at the bank. Did you know that some merchants are taking a step further by confirming address information when it is different from the shipping address? Some merchants have saved themselves and unknowing cardholders thousands of $ by checking the address on Google Maps before shipping to a location other than the billing addres.
Step 2. Watch for purchases made with multiple card numbers, but all being shipped to the same address. This could be a fraudulent attempt to use stolen card information.
Step 3. Question unusually large orders. Especially if the purchaser is outside of the country and/or is asking for express or overnight shipping.
Most of all, go with your gut. If you have a feeling that a customer is not being completely up front with information you may need to take a little extra time to probe them more. It may be best to request another form of payment if you feel there is a possibility there could be fraudulent activity.
Do not rely solely on the authorization of the transaction. All the authorization can do is verify that the card has not yet been reported as lost or stolen. Since many of the credit card information being used fraudulently is a result of the fraudster obtaining card information via black market sites, sifting through garbage and stealing mail, etc. and not actually from physicall stolen cards, it is feasible that the cardholder is not aware their card number is in the wrong hands at time of card authorization.
Another reason not to rely solely on your credit card authorization is because address information can easily be obtained once the thief has the cardholders full card number and name. Be sure to get the CVV code. This 3 digit code on the back of the card will ensure that whoever is making that purchase has the card physically in their presence.
In addition to obtaining as much information as possible when authorizing a credit cards, keep accurate records of any further correspondence via email, phone, fax, etc. If you have caller ID pay close attention to where they are calling from. In some cases fraudsters from out of country have been known to utilize the TTY relay system for the deaf to disguise where they are calling from.
In all, keep thinking about how you can help deter fraud. It may take a little extra time, but will be worth it because it will keep costs down for everyone. So be sure to play your important role in being a fraud watch dog.
