With the unprecedented expansion and
growth of internet commerce, more and more retailers are openings up online
retail stores. Credit card fraud acts as a threatening force that dampens the
benefits that flow to end-users from technology. Especially in the case of
naïve and start-up entrepreneurs who are yet to learn the finer details of
payment processing online, instances of credit card fraud are increasing at an
alarming rate. Some caution points to young owners of online retail stores
would include:
●
Widening
knowledge base on credit card fraud
Credit card fraud gains momentum
with ignorance and carelessness. Entrepreneurs seldom pay attention to
educating themselves on the multifarious techniques used by scammers to
manipulate and forge credit cards. This is because they are so entangled in
core business and profit making that they neglect anti-fraud measures. Keeping
abreast of popular instances of major e-commerce credit card frauds will impart
better knowledge.
●
Using
safe and secure payment methods against credit card fraud
Small businesses must make that
critical extra investment and go in for payment processors that are of global
repute. Such trusted payment processors employ verification techniques such as
Verified by Visa and in the case of Mastercard, the securecode. Business owners may take further precautions
like embedding two factor authentications that will foil attempts to enter
credit card details obtained by fraudulent means. Making it mandatory for customers
to enter CVV, or a one time password that is sent to the registered mobile
number of the genuine card holder are all extra layers of security,
●
Subscribing
for a holistic online credit card fraud prevention system
There are a range of cost effective
options available that are within reach of the affordability of new and small
e-commerce establishments. Such custom-made credit card fraud prevention technologies are capable of integration with existing systems. The presence of
fraud detection filters, a sharpened verification system on customer history
and track record, using a host of online analytical and verification tools etc.
are some features of these fraud prevention solutions. These tools are powered
to highlight suspicious cases where the issue can be raised with the issuing
bank or the credit card company to assert credibility of the user.
●
Curtailing
instances of chargeback
The constant worry among ecommerce
entrepreneurs are increasing instances of chargebacks. A chargeback occurs when
a customer uses a fake credit card number and the transaction is denied by the
credit card issuer. A chargeback action is triggered when the customer realizes
an element of identity fraud and alerts the issuer not to honor the
transaction. Under chargeback which is yet another undesirable offshoot of
credit card fraud, the ecommerce business becomes liable for the amount in
question. The different options that are available for businesses to escape
from these consequences are to reduce information gaps, ensuring that merchant
processors keep the business informed of chargebacks instantly, so that
corrective measures can be taken.
●
Dedicating
at least a few resources to detect credit card fraud
Cyber security is something that
cannot be compromised. Based on affordability and volume of transactions, businesses
must have an in-house team or an outsourced one, dedicated to cyber security.
