E-Commerce Web operators are constantly faced with a higher chance of incurring a fraudulent credit card transaction than are merchants who operate a physical store. The chances are greater due to the fact that the cardholder is not present when a transaction is made, therefore making it harder to identify if the customer is the legitimate card holder.
These tips are a way to prevent fraudulent credit card transactions:
- 1. Make sure that the customer fills out all appropriate fields on the order form
- 2. Most fraudulent credit cards transactions fail to pass the Address Verification Check (AVS)
- 3.Record the I.P. address to every transaction; this will be of help if you are involved in a fraud investigation
- 4. It is very suspicious if a new customer makes a high order amount. Most customers new to a store specially an online store will first buy a few items to see if the quality is up to their standards.
- 5. Ask for the CVV code on your online order form. CVV codes are usually a representation that the card is on the hand of the customer, since the only document carrying that information is the card itself.
These five tips are of great help but they do not necessarily mean that fraud cannot occur.
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