Through technological advances and the increase of computer-savvy hackers, it is more important than ever for e-commerce merchants to enhance their fraud prevention strategies. Just like Visa says, “If the card is not there, you need to be more aware.” There are many simple techniques merchants can implement to help prevent card-not-present fraud. Below is a quick recap of Visa’s helpful poster.
Always Report Suspicious Activity
The most important thing to remember when preventing card-not-present fraud is to report any suspicious activity to your acquiring bank. If you acknowledge a fraudulent purchase, then you can help avoid a chargeback by taking action right away.
Ask for Additional Information
By asking your online shoppers for additional card information during checkout, you can also help prevent card-not-present fraud. Most credit card issuing banks will not authorize a transaction without the card security code and expiration date. They understand that if the customer cannot provide a merchant with this information, then he or she does not have the card while making the purchase.
You should also require a customer to provide a day or evening telephone number so you can call to confirm the transaction if necessary. This telephone number will also come in handy if you have problems fulfilling the order as promised on your website. Calling to let a customer know that their purchase will arrive late will also help you prevent a chargeback.
Address Verification Service
For U.S. merchants, you can use fraud detection tools such as the Address Verification Service (AVS). This tool will compare the customer’s shipping address to the billing address and provide you with feedback regarding the match. Keep in mind that AVS does not decline fraudulent orders. It simply provides you with the information to make that decision on your own.
Screen for Red Flag Signs
The easiest thing you can do to prevent card-not-present fraud is to use your payment gateway to screen transactions. If you see a purchase that does not fit typical buying patterns, then it should raise a red flag for you to investigate further.
Is there an order with an unusually expensive ticket value? Does the customer want you to ship the goods to Nigeria, Yemen, or even a PO Box? Does the order consist of multiples of the same item? Do you see purchases made with different card numbers, but shipped to the same address? All of these are red flag signs of credit card fraud. This is where the telephone number comes in handy to confirm the transaction.
Prevent Card-Not-Present Fraud with Instabill
Instabill has been working with MOTO and e-commerce merchants since 2001 and we are experts at helping you prevent card-not-present fraud. Not only do we pride ourselves in offering seamless online credit card processing services, but we also strive to help keep your business and customers safe from cyber crime. When you process payments with fraud prevention experts like Instabill, you can take control of your success. Contact us online or call 1-800-318-2713 to speak with an Instabill merchant account expert today.
