Report Credit Card Fraud

How To Report Credit Card Fraud And Protect Your Business

The need to Report Credit card fraud is a distressing reality in modern business. There are definite sales advantages to be gained by accepting credit card payments, and if we will compete in business, we must accept them. Yet, there is a dark side...

It doesn't matter if you conduct your business online or offline, if you accept credit card payments your business is at risk from unscrupulous fraud artists and credit card scam operators.

But, let's not despair.

Thankfully, there are some simple, practical tips you can use to prevent credit card fraud and protect your business from being victimized.

Online Credit Card Fraud Prevention

• Get the name of the bank that issued the credit card and the "card verification number," the small 3- or 4-digit number that appears on either the front or back of the card. The card verification number is an extremely useful tool in credit card fraud prevention.


• Design the online order form so you can obtain as much information about the customer as you can. On big ticket items, besides the customer's full name, get the address and telephone number.


• Always verify that the customer has given you a correct address. Most merchant credit card accounts offer an Address Verification System that will compare the address you've been given to the cardholder's billing address. If the two addresses don't match, then there may be a problem.


• If you need to ship a product to a customer, make sure the shipping address you've been given matches the cardholder's billing address. If it doesn't, you need to contact the customer by telephone and find out if there is a logical reason for the difference.


• Be suspicious of any orders that appear unusual. Repeat orders, orders for many different items, and orders for large quantities of a single item should raise alarm bells. Phone the customer to verify the order. If the order is legitimate, your customer won't mind your calling; it shows concern for his or her security and speaks of your professionalism.


• Clearly state on your order page that the latest anti-fraud devices are installed and operating on your website. Like a warning decal affixed on the window of a home or office building, this notice will cause thieves to have second thoughts before commencing a transaction. Most will retreat and seek less risky prey.

• Compare the customer's name and signature on the sales slip against the name and signature on the back of the credit card. If the names and signatures don't match, then politely ask for cash, or refuse the sale -- no exceptions.
  
  Many merchants have failed to prevent credit card fraud because they neglected to take this basic precaution.


• Examine the credit card for forgery by comparing it to legitimate cards. Each credit card company designs their cards with hard-to-duplicate features such as multicolored holograms that change their appearance in the light, and signature panels that prevent the signature from being erased. Also, check the magnetic strip to see that it's intact and properly secured to the card.


• If the customer asks you to deliver an item to their street address, use the Address Verification Service provided by your merchant account. If the addresses don't match, you need to ask why and use your best judgment.