Friday 5 September 2014

Tips On Minimizing Chances Of Card-Not-Present Fraud



If the card is visible to the merchant, he can inspect it for validity and can also ensure that the card holder is genuine. However, none of the regular checks can be performed for an online transaction. But there is no reason to be disappointed, a long list of best practices and tools for prevention of frauds can protect high risk merchant.
Follow the next steps, every time you need to verify the genuineness –
1. The Information of the Transaction and Phone Number Needs To Be Verified
The merchant should call the customer and verify details of the transaction before shipping out the goods. Most fraudsters will not be able to verify the information on the form as they use a credit line to order at random and seldom keep records.


2. Monitor Priority Shipping Orders
Highly priced shipments with a request for shipping on priority may turn out to be fraudulent orders. Since the criminal is not paying for it, he really wouldn’t care about the shipping costs.
3. Repeat Customers That Order Differently Need To Be Verified
Merchants recognize the buying patterns of repeat customers. If there is any deviation from the regular pattern, it needs to be verified by calling the customer directly.
4. Use the Address Verification Service
By using the AVS, a merchant can easily compare the address on the monthly statement with the one on the card issues records, before processing an order.
5. Card Security Code
When in doubt the merchant should call the customer and check about the three digit verification code at the back of the card. A customer who knows this code, will also have the possession of the card.

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