subject: How To Avoid Fraudulent Claims On Credit Card Merchant Accounts [print this page] . This causes issues for the cardholder as well as for the business owner and merchant processing services. The best way to prevent fraud is to be diligent about following security procedures.
'Card Present' Situations
When you're face to face with a customer processing their card through your credit card merchant accounts, you need to take time out to verify the person who gives you the card is the cardholder. Request identification such as a driver's license and match it up to the card. Then, compare the spelling of the name and signature, but also check to ensure it hasn't been tampered with. Lastly, don't forget to check for security features such as ghost images, repetitive designs on the signature panel, and holograms on the card as well.
Pay attention if the 'cardholder' exhibits odd behavior such as nervousness, pulling the card out of a pocket instead of a wallet, or seems unable to look at you. If you do notice any of these things, go a step further by calling the merchant processing services for authorization. You may also want to check the number against a list of invalid or stolen cards and follow any instructions you are given very carefully. If everything is fine, be sure that you hand the customer his copy and put the other one away immediately. Finally, never leave anything with the number on it where someone might have access to it.
Internet Or Phone Transactions
Because you cannot go through regular procedures to process the customer's card through your credit card merchant accounts, you need to be extra diligent when taking a payment over the phone or through the internet. Anything that seems less than perfect should have you stopping the transaction from being completely processed through your merchant processing services. This includes things such as incomplete information, using a forwarded or free Web email address, or using billing and shipping addresses that don't match.
Sometimes the way someone orders can also be a big tip-off that you shouldn't let the order go through before investigating him or her further. Orders that seem out of the ordinary such as several small orders made consecutively or different cards with the same address are definite red flags that something is up. Other orders you'll want to check thoroughly include any that are obsessively large, those from customers insisting on rush shipping, and those from foreign countries.
When putting any transaction through your credit card merchant accounts, take all the time you need to ensure that the payment is legitimate. Make sure all of your staff is familiar with the procedures involved with reporting a card, dealing with your merchant processing services, and all of the indicators that something might be wrong with the transaction. After all, the only way we can eliminate fraud and theft is when we all work together.
