If you plan to start an online business, there will be times there you will need to buy some products and services online. While it is convenient, note that there are potential scams and even frauds. The most likely victims of Internet credit card frauds are the merchants, which is YOU.
Here are a few practical tips on how to avoid or detect a fraud:
- Don’t process the order just based on the credit card number of the customer. Demand for complete address and contact number of the customer. Insist on some means of independent address verification of the credit card orders, just in case, the card is a stolen one. This is actually the most common practice right now.
- When a customer, who makes purchases with credit card, requests that the merchandise be sent to a different mail address than the one mentioned on the credit card, be careful. Insist that a letter/fax, containing their signature and credit card number be sent, authorizing the transaction, whereby your liabilities will be limited.
- Be more wary of orders which originate free from email service providers. You see, it is quite easy for a fraudster to open a free, anonymous email account in another person’s name and then place an order using the fake email account and the stolen credit card number. I know this could be over-cautious, you should take precaution still.
- Be careful about unusually big orders along with instructions of immediate delivery as they want to make a quick get away.
- If in case of any doubt or suspicion, call on the customer’s number and reconfirm whether he had really placed the order. That little expense and the time spent is really worth in the long run.
- There are various services available to provide details of credit card stolen or those put on alert. Subscribe to these services which helps avoid consequent legal tangles.
If in the event you are still scammed by the fraudster, immediately call the credit card company and then inform them of the situation. Also if possible contact the cardholder and inform them that their card number has been stolen as many people wouldn’t even be aware that their account number has been stolen, which would help prevent further misuse of the card. Sometimes the bank will honor the transaction and let the merchant keep the payment, with the user taking the loss.