| Web-based businesses are particularly vulnerable | | | | entirely. Balancing security with usability is the trick. |
| to fraudulent transactions, simply because they | | | | One option for smaller business owners is to allow |
| can't verify a person's identity by looking at them. | | | | transactions when the credit card information is |
| Typically, when fraudulent purchases are made | | | | correct, but to call clients for confirmation if any |
| and found, merchants are the ones that have to | | | | red flags are present, like high priced orders or |
| cover the cost of the lost services or | | | | expedited shipping. Phone confirmations, however, |
| merchandise. Luckily, there are many ways to | | | | may be too much hassle for larger businesses to |
| detect and stop fraudulent transactions and | | | | handle. |
| prevent your business from being victimized. | | | | There are some unobtrusive security |
| The best way to detect fraudulent credit card | | | | specifications that business owners should |
| transactions is to know how they work. One of | | | | consider. First, since card testing relies on different |
| the more basic methods fraudsters use to find | | | | responses for declined cards based on the reason |
| valid credit card numbers is simply to plug in | | | | for the decline, consider using the same response |
| randomly generated credit card numbers and | | | | for each declined transaction. This will require |
| expiration dates to a website's payment page until | | | | customers to re-enter all of their card information |
| a transaction is approved. This type of fraud is | | | | in the event that their card is rejected, but it will |
| easy to detect because there are usually a high | | | | save you from being a target for card testers. |
| volume of declined transactions before a credit | | | | Second, make correct billing addresses a |
| card and expiration date are matched. Another | | | | requirement. Since card testers don't typically |
| type of credit card fraud is when someone with | | | | have any information besides a card number, |
| access to accurate credit card information places | | | | requiring a billing address that corresponds with |
| an order with the intent of actually receiving the | | | | the credit card will eliminate card testing entirely. |
| product they ordered. Some red flags for this | | | | Third, require customers to provide the three digit |
| type of transaction are: high priced orders, unusual | | | | security code printed on the back of the credit |
| amounts of products, different shipping and billing | | | | card. This will eliminate some fraudulent orders, |
| addresses, orders from foreign countries, and | | | | because customers will have to have seen the |
| expedited shipping. | | | | card in order to give an accurate security code. |
| Fortunately, most credit card processing services | | | | Employing these methods will help to protect your |
| provide customizable security options for each | | | | business from many fraudulent transactions. |
| business. Unfortunately, there is such a thing as | | | | However, your best defense against fraud is |
| too much security. If your security specifications | | | | simply to pay attention to the orders you receive |
| are too strict, you risk rejecting legitimate | | | | and communicate with your customers in any |
| transactions and complicating your ordering | | | | way possible. Personal interaction is the best way |
| process to the point that people avoid your shop | | | | to detect and prevent fraud. |