10 Tips for Preventing Online Credit Card Fraud

10 Tips for Preventing Online Credit Card Fraud - http://smallbiztrends.com Avatar Posted by stillwagon428 under Finance
From http://smallbiztrends.com 2692 days ago
Made Hot by: techmedia on September 13, 2013 12:34 am
Merchants and retailers are often on the front lines of managing payment card fraud. Online businesses face a unique challenge because all purchases are made as a “card not present” transaction. But there are red flags to look out for and security measures to put in place that will help minimize losses from online credit card fraud.





Comments


Written by HeatherStone
2691 days ago

Hi Steve,

Like Shawn, I'm leaving my question in both communities. I think it's great to have explanations from someone with real experience in this field as a resource for anyone out there who's run into these kinds of issues with credit card payments for an online business. Here goes. I notice in many cases, there's a whole lot of verifying going on here and I'm wondering, from a time management standpoint, whether this is something you need to allocate additional resources to as your business grows. Approximately how much time can an online merchant expect to spend on double checking on possible credit fraud vs. all the other activities that go into running a successful business? I realize spending the time to do this is better than taking it on the chin for a bad payment, especially on a really big order. But I'm just wondering, how much time does it eat up in practice and how do you compensate?



Written by mywifequitherjob
2691 days ago

Hi Heather,

Almost everything can be automated and in most cases only the large suspicious orders need to be verified. For our store, this is a very small percentage of the overall order total.



Written by ShawnHessinger
2691 days ago

Hi Steve,

Incredibly detailed information here. I've left this comment here and on Small Business Trends so perhaps you could answer it both places for the benefit of both communities. In the case of point number one, I suppose it's always possible that, even in the case of a legitimate order, you could end up having difficulty reaching someone by phone, especially overseas. I'm wondering. What do you do at that point? What's your next step or process to try to assess the validity of the order?



Written by mywifequitherjob
2691 days ago

If it's a suspicious order with a large dollar amount, I will almost always verify with the card holder even if they are hard to reach.

If they need their goods immediately, then usually they will be in touch if it's legit. But again, circumstances like this are extremely rare.



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