In an increasingly Internet-intensive age, credit card fraud protection has become an essential security measure for businesses to take. As long as you have something of value, there will be thieves who want to take it from you.
Contrary to popular belief, merchants are far more at risk from credit card fraud than the cardholders. Have you ever been a victim of credit card fraud? If so, you know just how traumatic it can be. Credit and charge card fraud is a huge industry costing consumers and card issuers hundreds of millions of dollars each year. Whether you have a brick-and-mortar store or an online business, credit card fraud is costing you money. So what can your business do to prevent credit card fraud?
False Identification: Contributing to losses from bad checks and credit cards is the use of false identification.
- Ask for and check identification, such as a driver’s license or other photo ID.
- Check the Hologram and Visa and MasterCard logo to see if they look blurred.
- Check to see if the ID has been altered in any way as a person trying to use a stolen credit card may also have stolen or fake ID. If you suspect a card to be counterfeit, call your automated authorization center to report the card. If they do not produce any satisfactory identification, do not complete the sale.
This technique is applicable in card-not-present scenarios. Address Verification System (AVS) is a process that matches the first few digits of the street address and the ZIP code information given for delivering/billing the purchase to the corresponding information on record with the card issuers. Most credit cards have the BIN or “first four digits of the account number” printed or embossed. If they do not match or are missing, the card is counterfeit.
Credit card fraud may not be entirely preventable, but by establishing cautionary procedures to check every credit card transaction, you can cut down your credit card fraud losses.