A substantial part of protecting merchant accounts is securing them from online fraud. At present, identity theft is the fastest growing crime in America. While online shopping allows for the ambiguity of a persons identity, it is highly targeted for the purpose of completing fraudulent activity. In other words, since no one really knows who they are selling to online, it is easy for a person to pose as someone else. However, there are security measure that should take place to minimize your chances of becoming a victim and reduce the risks of credit card chargebacks with your merchant account.
First of all, choose your merchant account provider based on the security features they offer. Many companies have their own screening measures that work to combat identity theft. One of the most important features you will need to implement is the verification of the card validation code. The card validation code, also referred to as the CVC, CVV, and CVV2, is the 3 to 4 digit number located on the back of each physical credit card. By verifying this code, it ensures that the card user has possession of the physical credit card, and has not just acquired the card number by hacking or some other illegal means. Often, when a credit card number is stolen for online use, the thief will not be able to provide this code for verification.
In addition to requiring the card validation code at your point of check out, it is a good idea to verify that the address provided matches the billing address of the credit card. Many internet merchant accounts provide services that run this verification process for you. This process is fast and often efficient at warding off fraudulent card users. In addition, be aware of anyone who requests international shipping or needs a large order overnighted. These are both red flags for fraud that is about to occur.
Sometimes chargebacks are not the result of fraud and can be avoided by effective communication. Be sure that the terms of your return policy are clearly stated on your website. It may also be a good idea to include them on paper with the product you are shipping. This should alleviate any frustrations your customer may experience that could lead to chargebacks.
In addition, know how your company name will appear on your consumer's credit card statement. Sometimes consumers will dispute charges if they cannot identify their purchase on their monthly bill. Make sure they will be able to recognize you.
Finally, present your phone number wherever possible. Consumers who can easily contact your business to settle problems are less likely to dispute them with their credit card company. Therefore, by taking this measure, you will experience fewer chargebacks and protect your merchant account.
Best Merchant Accounts
