Protect yourself from Credit Card Fraud



The following are some steps to take, to protect from this problem:

  1. Work with a bank that can provide a checking type system.
    The system will confirm whether the billing address given by the buyer online matches the address held by the card issuer on their files. Many credit card companies can provide this service and it is almost a must for any business accepting credit card payments online.

  2. Verify with the credit card issuer.
    Make a call to the credit card company for confirmation and verification. This is not always possible because the company may be international, but if it were a local company then a staff member would earn their salary many times over by preventing loss through this type of fraud.

  3. Check the address manually.
    If you don't subscribe to the system available through the banks where they verify the billing address and match with the details they have on their system, then its not too difficult for a member of your staff to make a call to verify the address. This can be done by going to any of the mapping services available online (such as Excite Maps, etc).

    If the card has been stolen, the person who has the card will probably not know the real owners address and will not be able to provide that information. If a fictitious address is given and it doesn't match up, then the fraud is stopped in its tracks.

  4. Check with the cardholder.
    If you have any concerns about the validity of the card presented to you, make a call back to the cardholder. If you find the person ordering is not the cardholder, either cancel the order or delve further for verification and authorisation. It's best to talk to the actual buyer and get full confirmation before finalising the sale.

  5. Initiate other checks.
    You can also check the billing address and shipping address. If the billing address is the where the goods are to be shipped to then you can be satisfied that the order is correct. It is more common for the billing address and delivery address to be the same than not. If you are dealing with expensive items, then sending the goods to the actual billing address can solve a lot of problems.

  6. Be aware.
    The main thing is use your common sense and built in “radar” before concluding a deal. If someone orders online and the details appear to be suspect - maybe some information is not given, or the name is obviously fake etc, then you don't have to accept the order until you have fully confirmed that the person who owns the card is the person purchasing the goods.


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