5 Tips to prevent Online Fraud

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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