No one can deny that eCommerce has opened up a world of opportunities for businesses and consumers alike. Businesses are able to reach more people than ever as a result of the Internet. But with the increase in profit potential comes an increase in loss potential. Credit card fraud is an ever-present reality for eCommerce businesses. So, how can you protect your business from potentially damaging losses?
1. Compare addresses – Typically, a fraudulent purchase will have different addresses for billing and shipping. While there are legitimate reasons for an order’s billing address and shipping address to be different, if something looks funny, verify first.
2. Check for the CVV – One simple way to avoid credit card fraud is to require the CVV be provided in the purchase information. The CVV is the 3 digit Card Verification Code printed on the back of the card. A correct CVV entry means the customer more than likely has the card in their possession. Requiring this information helps eliminate fraudulent charges where only the credit card number was stolen.
3. Question the unexpected – The longer you run your eCommerce business, the more you will discover trends in purchase patterns. So when an order comes in for large quantities of expensive or seldom purchased items, beware. These may still be legitimate charges, but it’s better to check and be sure than be sorry later.
4. Check odd information – If the phone number doesn’t look right, the email looks a little off, or you are mailing items to Johnny Appleseed, be suspicious. Do what you can to protect yourself by confirming as much information as possible before hand.
5. Suspect multiple failed attempts – While it is possible that a legitimate customer may have one or even two failed purchase attempts due to improperly entered data, the higher the number of failed attempts, the less likely the purchase is legitimate.