Fraud is badass. Ask those businesspersons who have lost billions in fraudulent online transactions; you would get to know how badly a fraud could cost. But as long as you are on the biz, you would be requiring to accept all major credit cards and electronic checks. Here’s how to prevent fraud in online credit card transactions.
Check Delivery Address
There’s a higher possibility of fraud when the ‘bill to’ and ‘ship to’ addresses are different, yet the customers is asking for expedited shipping. So don’t do expedited shipping if the billing and shipping addresses differ.
Verify IP Address
When the IP location from overseas and the address on the credit card during the payment mismatch, there is greater risk of fraud. So restrict the IP addresses originating from the countries where you don’t do shipping.
Check Email Accounts
While placing the order if you find the email address something like firstname.lastname@example.org, it’s certainly a red flag.
Use Online Tools
If you have any question in your mind, do research about the credit card transaction. Tools like Google maps and Zillow would help you find out the address. You can also use a service like ZabaSearch for verifying the customer’s address.
Keep a Log of Credit Card Numbers
If the number of times a customer enters in one credit card number exceeds 5, it’s possibly a scam so flag this.
Restrict the Number of Attempts
Restrict the number of times a customer can incorrectly enter in credit card numbers. Ban the user once s/he has reached the maximum attempts.
Enforce Security Code
Ask the users to enter the security code which is a 3-digit number printed on card’s backside (American Express has a 4-digit code on the front). Scammers cannot easily get this code.