How to reduce credit card fraud at your business
Liability for fraud lies with the merchant, rather than the card-issuer, for “Card-Not-Present” sales, which are sales made by mail order, telephone/fax order, and internet sales. After a merchant is damaged by fraud once, the credit card processors often assume heightened risk and increase their rates. The merchant also risks losing their accounts with card companies if their fraud rate gets too high.
Merchants: Look Out for These Signs of Possible Credit Card Fraud:
- Unusually large orders placed through the Internet without any contact from the customer.
- Rush orders for large quantities or high-priced goods.
- Inquiries from buyers promising to place a large order, but who want you to send them a list of what you sell.
- Missing information or information the customer refuses to give such as a day-time phone number.
- Orders that are shipped to a different address than the billing address.
- Orders from foreign countries
- Orders on US cards shipped to foreign countries
- Billing addresses that don’t match the information on file with the credit card company.
Your BBB suggests using a combination of the following methods and techniques to defend against credit card fraud.