How to Prevent Credit Card Fraud During Card Not Present Transactions


Dealing with card not present transactions can be difficult for a merchant. It’s a lot easier for someone to commit fraud when they don’t have to have the actual card in front of them. There are certain security measures that can be put in place but it is still easier than if the person face-to-face with the physical card in front of you. Card not present transactions are generally done online or over the phone when purchases are made. Here are some tips for protecting your company despite card not present transactions.

Secure payment processing solutions
Make sure that your payment processor has their own security and is trustworthy. You may want to add another layer of security protection software over your payment processing services. Part of collecting a secure payment is making sure that not only the card number is correct but the name on the card, the billing ZIP Code, the security code on the back of the card as well as making sure the billing and mailing address match. Make sure all the security measures are completed before the customer is even allowed to continue on to the next page. There are programs and software that you can use to secure the payments.

Recognizing fraud
There are typical traits to online fraud when it comes to card not present transactions such as the billing and mailing address not matching, a sudden large purchase when the customer normally make small purchases or has never purchased before as well as other indicators. Your stuff should be well trained and briefed on how to recognize these first fraud indicators. If you can catch fraud in the beginning stages then it will be a lot easier to prevent it. Once the transaction goes through it’s a lot harder to reverse and catch the perpetrator. Regular training sessions should be offered for employees to keep them updated on fraud techniques. Hackers and criminals are constantly coming up with new ways to steal, especially online. These computer geniuses have the luxury of not having to face anyone face to face and that makes them very daring.

Keeping accurate records
This is helpful for several reasons. The first is that it helps to keep track of regular customers and their purchases so that if something out of the ordinary happens you can give them a courtesy call and find out if the purchase was really made by them. The next reason is, should a fraud transaction make it through, your records will be helpful if the case has to go all the way to court or investigation. Being disorganized and unprepared leaves the door wide open hackers and people with fraudulent intent. Making sure that all your records are up to date and accurate will make you less vulnerable to these situations. Accurate record keeping is a good practice to maintain in a business even if you are purposely looking out for fraud. However, the fact that keeping good records will help you recognize a fraudulent process is a great bonus and motivation to staying organized.

Priority shipment request
Keep an eye out for priority requests. Costly priority shipments could be an indication of a fraudulent transaction. This is especially true if a free shipping option was available but ignored. People generally don’t like to pay for shipping but criminals don’t care about how much they’re spending, They just want to get there stolen merchandise as soon as possible.

Credit card fraud can be pretty difficult to prevent online or over the phone but stopping online purchase availability will make you lose a lot of business. However hopefully these tips will help you and your employees to prevent as much as you can. If something slips past you or an employee, don’t get overly upset, there are still measures that can be taken to get the money back. Give your employees a little grace because it is definitely very difficult to catch one of these things while it is going on. Having updated firewalls, anti viruses and software will help to keep things safe as well. Encourage your customers to make sure they have these things in place before shopping online.