Avoiding Credit Card Fraud on Your Small Business Web Site
If you do business on the Web, you should be concerned about credit card fraud. With identity and credit card theft running rampant, you need to assure your customers that you are committed to protecting them from fraudulent transactions.
1. Require a credit card verification number on all purchases. Also referred to as a CVV (card verification value) or CVV2, this three-digit number is located on the back of every Visa and MasterCard. Requiring a CVV cuts down on fraud from stolen credit card statements or numbers that are plucked off of the Internet. However, if the thief actually has the credit card, requiring the CVV won't help.
2. Use an account verification system. Also known as AVS, this system checks on the billing address of the card to make sure that the ZIP code and other information matches. This can greatly decrease credit card fraud as long as the thief does not have access to the card holder’s billing address.
3. Look at billing and ship-to addresses. Although this is not a foolproof screening method, if the billing and ship-to addresses are radically different, beware. Sometimes addresses are different because buyers would like the item shipped to their office or shipped somewhere else as a gift, if the addresses are in different states, proceed with caution.
4. Hire a fraud-prevention service. If you are concerned about credit card fraud, there are many different companies that can help you ensure that you are not processing any fraudulent transactions. Cyber Source offers a service called Payer Authentication, which takes advantage of the Verified by Visa and MasterCard Secure Code programs. Card issuers are working very hard to ensure that their customers are protected, and you can partner with them by using these programs. If you prefer to have a third party help you with these programs, this is a great way to participate.
1. Require a credit card verification number on all purchases. Also referred to as a CVV (card verification value) or CVV2, this three-digit number is located on the back of every Visa and MasterCard. Requiring a CVV cuts down on fraud from stolen credit card statements or numbers that are plucked off of the Internet. However, if the thief actually has the credit card, requiring the CVV won't help.
2. Use an account verification system. Also known as AVS, this system checks on the billing address of the card to make sure that the ZIP code and other information matches. This can greatly decrease credit card fraud as long as the thief does not have access to the card holder’s billing address.
3. Look at billing and ship-to addresses. Although this is not a foolproof screening method, if the billing and ship-to addresses are radically different, beware. Sometimes addresses are different because buyers would like the item shipped to their office or shipped somewhere else as a gift, if the addresses are in different states, proceed with caution.
4. Hire a fraud-prevention service. If you are concerned about credit card fraud, there are many different companies that can help you ensure that you are not processing any fraudulent transactions. Cyber Source offers a service called Payer Authentication, which takes advantage of the Verified by Visa and MasterCard Secure Code programs. Card issuers are working very hard to ensure that their customers are protected, and you can partner with them by using these programs. If you prefer to have a third party help you with these programs, this is a great way to participate.
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