How to Protect Your Business from Credit Card Fraud

Everywhere you look there is information on howproduct to be sent to a different address. You may
individuals can protect themselves from credit cardopt to call the bank of the credit card and ask them to
fraud. This information can be found at bankingcall the cardholder to verify the purchase. It is definitely
institutions, libraries, on TV, on the Internet, itsadvised not to ship orders internationally with a
everywhere. However, that isn't the case fordifferent billing and mailing address. 3. In most fraudulent
businesses. How can your business protect itself fromcases, the card thief will request a next day delivery.
these fraudulent individuals who make purchases forThey want to get the product fast and without being
products or service online or over the phone? Likecaught. This is a red flag and should be carefully
most business, you may ship the products beforeobserved. If the order is larger than your typical orders,
discovering that the credit card is stolen. In this case,most definitely question it. Remember, the card thief is
your company suffers the bill and the true owner ofnot concerned about how much he/she is spending; it
the credit card cannot be held reliable. Nevertheless,is not their money. Most likely, he/she needs a large
these are the steps to protect your business fromquantity for resale. 4. As a business owner, you want
fraudulent individuals and avoid this terrifying situation. 1.to do everything it takes to protect your business from
It is important that you gather all the informationfraudulent activity. It may be resourceful to have all the
associated with the credit card. This can be done byinformation collected validated by the customer. Since
requesting all of the information exactly as it is shownyou are not meeting with the customer directly, it is
on the card. This information includes: The cardholder'swise to request that the customer fax you a copy of
name (Exactly as shown on the card, including middlethe credit card and photo id. This may seem extreme,
name or middle name initial). Request all 16 digits on thebut not as extreme as been taken for thousands of
credit card. Request the credit card verificationdollars in products. This precaution should most
number. This number is the last 3 or digits located ondefinitely be exercised for large orders involving heavy
the back of the card after the account number.sums of money. 5. If you do find yourself a victim of
Request the expiration date on the card. Request thethis fraudulent activity, take immediate action to reduce
billing address for the card which in most cases shouldloss. a. Immediately inform your local police department.
not be a P.O. Box. Requesting this information is veryMake sure to answer all the questions the police may
important. The fact is that most card thieves only haveask and give them all the information that you have. b.
the card number. They will not have any otherContact the bank of the credit card. Request that the
information associated with the card. By having all ofissuing bank calls the customer to inform them of the
this information you will be able to utilize addresssituation. Make sure to give the issuing bank all the
verification services. Address verification serviceinformation that you have. Including, the billing and
compare the billing address given by the customer tomailing address the card thief submitted. When the
the banks database and alerts the user if thecardholder calls your company, explain the importance
addresses are different. 2. Pay particular attention toof the situation and why it is vital that he or she also
customers who list a different billing address andreports the incident to the police. By following these
mailing address. In some cases, card thieves may alsosteps you are taking the necessary action to protect
have the cardholders ID. In this case they will be ableyour business from credit card fraud.
to supply the billing address; however, request for the