Every year, e-credit card transactions cost retailers thousands of dollars, in the form of fraudulent purchases. It is very difficult to recognize fraudulent transactions without doing the due authentication of customer and scrutinizing his identity.
However, with most advanced technology and additional effort, online merchants can protect themselves from e-credit card frauds and minimize their financial risk by substantial extent. Here is the list of strategies which online retailers can follow to prevent online credit card frauds -
• Be apprehensive about unusual orders. Especially, about high amount of orders for same item and exceptionally large orders which has high emergency. If any order appears suspicious, you can conduct additional research to identify whether the order is fraud or not.
• Verify the IP address of the client to determine the location from where customer has placed his orders. Cautious over the payments from high-risk international countries like Russia, Lithuania, Turkey and Nigeria, which are notorious for large number of frauds
• Keep anti-fraud policies followed by your company properly visible on your website. Convey potential fraudsters the message that they have to bear high implications if they place any deceptive orders.
• Scammers often take help of undetectable email addresses initiated from untraceable web-based services. Always ask the customer to give domain-based email address or ISP that can be easily traceable from any location.
• If shipping address provided by customer doesn’t match with billing address, contact the respective customer and verify the order. Follow extra diligence when the shipping address of customer is not from the same country from where your business belongs.
• If you doubt about any online transaction, contact the customer and ask for passport or driver’s license copy to validate their identity.
• Beware of transactions which are made from different credit cards from only one address or large number of orders placed from similar credit card in small period of time.
Above list of preventions can definitely help online retailers in protecting their business from e-credit card frauds and activities related with it.