The credit card is one of the most convenient ways for consumers to pay for goods, products, and services. Not only does it mean people no longer have carry cash in their wallets, they don’t even have to have the cash in their bank account, or make transactions at a physical location. However, when a credit card is stolen, and used to make unauthorized purchases, the credit card companies protect the customer, not the merchant.
That’s why when it comes to merchant services like handling credit card transactions, merchants should take every precaution to ensure that a purchase made is a legitimate one. Because if it’s a stolen credit card purchase, the customer is compensated, but you are not. So how do you make sure you’re in the right?
One of the most basic credit card fraud protocols is to ensure, especially for online orders, that a purchase made with a credit card is going to the address specified on the credit card. If an online purchase of a US credit card is going to Malaysia, that should be a big, red flag to exercise caution.
Make sure for online purchases that a credit card security code feature is enabled. If a fraudster manages to glean the actual credit card number on the front of the card, the security code on the back is the last ditch defense. Anyone that can’t provide the security code and fails that test should not be allowed to complete a transaction.
Another great way to make sure a purchase is taking place as intended is to get a re-confirmation of intent. Make this a part of your purchase process, so that a phone call, email, or social media confirmation such as LinkedIn or Facebook is required to complete the purchase. This can often be a critical final check in preventing a fraud purchase from going through.