How to Protect Your Online Business From Credit Card Fraud

Posted by Anonymous , 9/4/2007 Tags:ProtectOnlineBusinessFromCreditCardFraud
Post By :
Anonymous
Rate:
Vote

How to Protect Your Online Business From Credit Card Fraud

Introduction

Stolen or false credit card numbers and a lack of person-to-person contact can make online credit card transactions vulnerable to fraud.

Instructions

Difficulty: Moderate

Steps

1

Step One

Articulate a clear return policy, visible on your site.
2

Step Two

Write and display a disclaimer on the site, stating that the customer agrees to charges and will pay them. This statement does not mean that a customer cannot dispute a charge (make a chargeback).
3

Step Three

Ask customers for shipping and billing addresses. This information can assist credit card issuers when tracking down fraudulent activity.
4

Step Four

Send products via a national shipping company to avoid customers saying that they never received your product. These companies offer tracking on every package sent, and you can get delivery confirmation online.

Tips & Warnings

  • Check out sites such as No Chargebacks for a database of credit card numbers that are frequently used in committing credit card fraud.
  • There are companies that assist with billing, but their services can be costly.
  • If you are wary of any charge, contact your merchant bank with the credit card number in question and ask for assistance in verifying the account number and address.
  • If you process orders through another merchant's account, that merchant doesn't have to send you the payment.
  • If a merchant receives too many chargebacks, its bank reserves the right to cancel its account, meaning that the merchant can neither accept nor process credit card charges.

Overall Things You'll Need

  • Credit Reports
  • Accounting Services
Tools: |