How To Reduce Online Credit Card Fraud

How To Reduce Online Credit Card Fraud
Published Date: 2009-06-03 11:10:24 WorkOnInternet.com

Copyright (c) 2009 Melanie James

If you sell products online, you should be on the look out for credit card fraud. Yes, internet merchants need to be even more cautious when it comes to accepting credit card payments to avoid becoming a victim of hacking or causing their clients to become victims of ID theft. While carelessness can cost you and your clients big, implementing strict guidelines for online payments can protect both you and your customers from fraud. If customers can see that you take the extra step to minimize the risk of fraud, they will be more confident in doing business with you. Below are practical tips on how you can avoid fraud.

Closely verify payments. How can you properly verify online credit card payment? One way is to require the the CVV or the three-digit card verification value found at the back of Visa / Mastercard cards, for American Express its a 4 digit code found on the front of the card.

If a customer is purchasing from your retail location, ask for a valid proof of identification. Train your staff to not be afraid to ask for identification. If the customers credit card isn't signed on the back ask to see their drivers license or passport. Checking the cardholder's signature must become mandatory. Make sure that both signatures on the credit card and on the ID are matched. Use an account verification system or AVS. Through the account verification system, a merchant can check if the zip code and other details on the credit card match with the zip code and personal details of the credit card owner. In case the card has been stolen, one or two details will possibly not match.

Install a firewall on your computer system. Install a firewall in your computer to protect your system from hackers and malicious programs. Use a secured website. Using a secured website should be every internet merchant's top priority. Your site should be encrypted with at least 128-bit SSL (Secured Socket Layer). Buyers will be more confident in making an online purchase if they can see that you're using a secured server.

Use a secured shopping cart. You may need to invest for the best shopping cart software but it is money well-spent. Some shopping carts offered at a cheaper cost may not give you guaranteed secured protection. It is wise to choose a shopping cart system that is trusted by big companies and more online marketers in the industry. The higher cost for a secured shopping cart is definitely a wise investment.

Check the expiration date on the credit card. Identity thieves may use expired credit cards when shopping. Be sure to examine the expiration date of the card before accepting the purchase. Another tactic is the use of multiple credit cards in one purchase. These cards are often stolen from different credit card holders so watch out for customers who want to pay using more than one card for the same purchase. Chances are, the credit card numbers have been stolen. Call the credit card company.

If you find yourself in a questionable situation, the best way to check the identity of the credit card holder is to call the credit card company and verify the account holder's information. This may take extra time and effort but taking this extra step can save your business from the risk of loss due to credit card fraud.

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Entrepreneur and writer. Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line. Melanie is currently working with http://www.merchantscenter.com

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