5 Tips to Help Merchants Avoid Credit Card Fraud
There are many security tips out there that consumers can follow to avoid credit card fraud, but what measures can merchants take to ensure their customers and data is safe from hackers, identity theft and costly chargebacks? Below, find just a few ways that you can keep your business safer and reduce the risk of credit card fraud.
Implement Address Verification System (AVS)
AVS is a credit card processing tool that allows merchants to include the cardholder’s billing address and ZIP code in the authorization request. This additional layer of security is especially useful for Internet transactions and other card-not-present sales, ensuring that whoever is making the purchase is the same person receiving the card’s monthly billing statement.
Request Credit Card Verification Values (CVV)
A credit card verification value (CVV), also known as card verification value code (CVVC) or card verification code (CVC), is a security feature that helps prevent hackers from using credit card numbers that have been generated from fraud attacks and security breaches. By requesting the CVV, which appears as a three- or four-digit code on the front or back of the card, merchants can verify the person making the purchase actually has the card in hand.
Recognize Counterfeit Cards
Counterfeit fraud occurs when criminals create fake cards with real information to make fraudulent purchases. The ability to recognize a counterfeit credit card can help you prevent fraud. Be sure that the card’s embossing is clear and straight, and examine the signature panel to ensure it hasn’t been tampered with. Specific credit card security features, such as holograms and CVVs, can also help you determine if the card is a fake.
Examine Online Transactions Carefully
For online transactions through e-commerce payment gateways, in which you have no way of examining the physical credit card, you can still take certain steps to ensure the purchaser is not using stolen credit card information for fraudulent purposes. Be wary of different credit card numbers that are entered from the same IP address, for example, as well as large orders that include many of the same items. Also be aware of orders charged on multiple credit cards and sent to the same shipping address.
Comply with PCI DSS Standards
Make sure your payment processing system is compliant with PCI DSS standards, which further protects customers’ information and ensures your business is secure.