Use designated account for Internet
orders (check with bank for restrictions)
90% of fraudulent orders come from free
e-mail addresses. You may want to consider refusing credit card orders from
customers using free e-mail.
There is a higher risk for
non-tangibles (software, etc.).
Subscription services are high
risk.
Verify manually if “bill to” and “ship
to” are different.
Use a traceable shipping method.
Use manual credit card processing with
AVS verification for least risk.
Inform customer who the charge on their
credit card will come from when they look at their monthly statement in the HTML
and e-mailed receipts.
International orders are the highest
risk of all. Request phone # on back of card and manually verify. Once the
product is out of the country, it’s gone.
Phone the customer back on large
orders, especially on 2nd day or overnight shipping.
If you take Internet checks, consider
using the iCheck service.
Be wary of breaking policies for
customers on payment issues, it can be a fraudulent order (i.e. shipping to a
3rd party address that
doesn’t match the credit card billing address because it is a gift).
The merchant is most at risk for
Internet fraud and charge backs since there is no signature. Try to get backup
information. Only give free offers and bonuses upon receipt of a completed
warranty card or get customer receipt confirmation another way.
Problems resolved in favor of your
customer, reduces the chances of negative word of mouth advertising.
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