Reducing The Risk Of Credit Card Fraud In Your Company

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Reducing The Risk Of Credit Card Fraud In Your Company-Chispa MagazineTo get your business to succeed on a global scale, you need to start taking online sales through your website. The site allows you to open your business for twenty-four hours a day, three-hundred and sixty-five days a year to maximize profits. However, there is a negative aspect on ecommerce: credit card fraud. Anyone could potentially use a credit card that is not their own and buy products from your company with said card. If you do not take the necessary precautions, you will be liable, and you will face sanctions. To prevent the firm from being complicit with credit card fraud, follow these simple rules.

Identification
The first is to make sure that the cardholder is exactly who they say they are, which means you need to identify them as the card holder. To do this, you can ask a few simple questions that only the cardholder would know to ensure that no fraud is taking place. For example, you can ask for the card number or the three digits on the back of the card because lots of cards don’t print them anymore. Alternatively, you can ask for their full address, including their zip code. If they answer correctly, you have done everything in your power.

Prevention
Thankfully, there is more than one way to skin a cat. Just because a fraudster passes the first test, doesn’t mean they will pass every test. The next step is to prevent the fraud from taking place once they convince you they are legitimate. How do you do that when you don’t know they are illegitimate? You do it by installing software instore or online that adds additional security measures. Instore, you can invest in an advanced ID scanner that can tell you the real from the fake. Or, online, you can work with the card company to prevent fraud. Then, then banks can ask the user to input their password, or a few digits of the password, to authenticate their identity.

Go The Extra Mile
Once you take an order, you can always double check that the person who made the order is genuine. The odds are that you will have their email address or phone number as it is a part of the registration process? Yes, then send them an email or pick up the phone and double check that they made the order. If they agree, you can happily sanction it and everyone’s  a winner. If they disagree, you can cancel the order and report it the fraud team.

Only Deal With The Name On The Card
Lots of people go instore or call you on the phone and say they are not the cardholder, but that the cardholder is fine with them using their card. Don’t accept that statement as fact unless you can talk to the cardholder and get them to confirm. Okay, they might be their husband, wife, daughter or son, but how are you supposed to know? They only have to confirm once, and then that person can use their card.

Photo by Simon Cunningham

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Milo Senalle

Milo Senalle

Managing Editor at Chispa Magazine
As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.

Milo Senalle

As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.