Dealing with Credit Card Fraud

credit card fraud

Businesses face the risk of credit card fraud every day

When customers misuse credit cards, it can result in the loss of products, services, time and money. Retailers may be required to pay significant fees or fines as well. Credit card payment fraud takes several different forms. Fortunately, there are many ways to prevent it.

Most credit card fraud involves the use of stolen credit cards or card information. A thief may steal physical credit cards or gain card details through phishing, computer viruses, and other methods. Yet another technique involves creating a fake copy of a legitimate card. Some criminals combine this type of payment fraud with identity theft.

To prevent this, businesses should take steps to fully verify every customer’s identity. Stores may deter credit card fraud by requesting identification. Online retailers can verify that each buyer’s mailing address matches the address linked to his or her payment card. They can also call customers by telephone to confirm large orders.

Another type of credit card fraud doesn’t involve the theft of a payment card. A customer might purchase an item and claim that he or she never ordered it. The credit card company may react by returning the customer’s money at the retailer’s expense. A customer could also demand a refund and claim that the product didn’t arrive.

One way to stop this type of fraud is to use signature confirmation when mailing valuable items. This creates proof of the fact that a buyer received the product and accepted it. Email order confirmation systems also help to prevent this problem. Additionally, it is helpful to ban customers from purchasing more items after they make false claims.

The E-Complish payment processing system provides address and code verification services. However, these features can be defeated by skilled fraudsters. Our Fraud Detection Suite goes beyond this basic level of protection. It automatically detects suspicious credit card activity and sends email notifications to the business operator.

Upon receiving a suspicious activity report, staff may decide to approve, cancel or put a hold on the questionable transaction. The Fraud Detection Suite also enables companies to ban unwanted customers by their IP addresses. The web-based system is simple to operate and its transaction filters can be customized to suit any business.