5 Tips To Secure Your Merchant Account From Frauds

Where money is being generated there are thieves. Money and goods draw unscrupulous people like bees to honey. And the popular marketplace for thieves today is the World Wide Web. Cyber thieves can carry on their robbery without being policed or leaving traces of their activities. So, it is important for ecommerce websites to protect their merchant accounts from frauds and stay one-step ahead of cyber fraudsters. Its not just money but goods that are stolen from the cyber marketplace.

The statistics regarding credit card fraud and chargeback fees to merchants is frightening. According to research the estimated online fraud in 2007 in the US alone is projected ar 3.2 billio
USD. Online fraud has been on the rise, in 2003 it was 2.3 billio
USD; 2005 it was 2.7 billio
USD and in 2006 it reached 3.0 billio
USD.

It is important for cyber business to stay one step ahead of criminals to secure their online payment systems optimally:

1. It is important to ensure that you ask the gateway provider about screening features and the functions of each. Screening features must precede credit card payment processing. Many payment gateways have in place an address verification system, AVS. This checks the address given on the billing details with the address in the credit card issuer’s records. Use the AVS system as an indicator of internet fraud.

2. Always use the CVV2 as an indicator the CVV2 is the three digit identifying number located on the back of a credit card. Although this check helps minimize fraud some thieves even use the correct CVV2 number while thieving.

3. Use a quick verification process that goes a little beyond asking for the customer’s name, credit card number, and CCV2. Devise simple questions that will help you check the identity of the customer. Check e-mail account details to verify whether the customer is genuine. Frauds hardly ever use their own email addresses.

4. Check whether the shipping address and billing address are the same. And request for a contact number if a customer hesitates then refuse to process the order. Fraudsters hardly ever give their own phone numbers and more often than not request for goods to be shipped to addresses other than the credit card billing addresses.

5. Install traffic tracking software on your website. This creates demographic data that will pinpoint origins of orders. For this method to be effective use a “time stamp” on each submitted order. If a order originates from Siberia with a billing address in London then make all efforts to verify he order stringently.

When in doubt always make enquires with the bank or credit card company and do not ship the order unless you confirm it is genuine. Suspect large orders that request express delivery. Trust is important in any business so it is important for you to also rely on your instincts, if any order seems “odd” take the time to make thorough checks. Many e-commerce merchants have a system in place that verifies customers by calling the telephone number of the person placing the order.

Be a savvy e-commerce merchant and keep up-to-date with e-commerce security developments and innovations. Read articles and reviews on the World Wide Web with regularity. Sites like http://www.merchant911.org/fraud-trends.html are devoted to helping online merchants conduct their business safely.