1. Display fraud notices in obvious places on your website. You can defer most fraudulent charges this way, because the scammer will realize that you are aware. IP and email addresses can be tracked to find out who made the purchases.
2. Check over your orders. If someone places and order with your company and you gut tells you that it’s suspicious… use your judgement! Multiple products and expensive next day shipping are something to watch out for. Make sure all information is filled out correctly.
3. Use the AVS system. All cards should be checked to make sure that the information entered matches the information on file with the credit card company. You can’t exclude orders with mismatched information, but it is still wise to check if you are suspicious about a transaction. You can always call or email the customer if you have questions about their order.
4. Get security codes. On the back of most cards, there is a three digit security code. For American Express, this code is on the front. Getting this code ensures that the card was in hand at the time of purchase.
5. Be aware of international purchases. A large amount of fraudulent transactions come from Asia and Africa. Be extra careful when accepting payment from these locations. It may be beneficial to only accept US based orders.
6. Check the email addresses. Free email addresses can be easy to get, making them a prime source for fraudulent activity. People trying to make a purchase will hide their identity with them.
7. Check to make sure your customers aren’t on any negative lists for past fraudulent activity and chargebacks.
8. Utilize fraud prevention software. Merchants can check their orders with the click of a mouse to ensure that their transactions are valid.
9. Keep your records! Save emails, voicemails, and receipts from your transactions. Recorded calls are also beneficial. This will help if you need to fight a chargeback in the future.
10. Contact your customers. By speaking directly with the purchaser, you are able to confirm the order. If they don’t answer your calls or emails, take it as a warning that the charge may not be valid. Sending a letter to the address provided may also help confirm orders.