Small Online Merchants - Ten Steps to Avoid Credit Card Fraud

I'm personally involved with the operation of fourthis is important information. Compare the number you
different web sites that sell to consumers and franklyare given with the address. There are some very
I'm getting really angry about internet fraud because,easy to access online charts that will show what area
as a small merchant I'm the one that it hurts. Whencodes go to which states. There's one for sure at If
credit cards are used fraudulently it's not the banksyou have a billing address in Texas and the phone
that are on the hook - although they'd happily let younumber in Nevada- your
believe that they are. And consumers are not on the"someone's-trying-to-rip-me-off" radar should now be
hook. And the suppliers are not on the hook. It's us -on high alert. Make the same check on the shipping
the poor fools in the middle - the smallest fish in theaddress and phone number.
food chain.3. Look for Hotmail or Gmail addresses on both the
In the last week, I had a $1000.00 fraudulent order wasbilling and shipping side.
caught before it shipped, but missed a $250.00 order4. Look for unorthodox names. Believe it or not, that
placed with a stolen card that was sadly made on a$1,000 order was being shipped to Ladysmith
product with almost no margin in the first place - so IMoneybags. I'm not kidding, either. Talk about literally
got to eat 90% of the cost as a raw number, neveradding insult to injury.
mind that the remaining 10% was supposed to go to5. Look for an order with several of the same items.
overhead and marketing and all those other wonderful6. If you're not sure, don't ship it immediately.
things, so all told that write off cost more than 100%.7. If the phone numbers don't match up, do a white
Sweet, eh?pages search for another telephone number
I'm angry that as far as I can see, these scum ballsconnected to the cardholder (their name and address
use stolen credit cards that are shipped to a realmight just be the only legitimate information you have)
address - the consumer complains when they see theand phone them to verify the order.
bill. The credit cards charge it back to the merchant8. Look for orders shipping out of the country.
and our payment processors slap on about a twenty9. Cultivate a good relationship with your suppliers.
five buck penalty, because I guess we haven't beenMost of them are smaller businesses with people who
worked over quite enough by then. And the peoplehave seen a lot of rip offs before. Just be sure that
who perpetuated the fraud keep getting away with it. Itthey like you enough to be willing to help out, but don't
seems that crime does pay after all, but then, I'll betcount on them exclusively because if they ship - YOU
that most of the people reading this article havePAY.
already reached the same sad conclusion.10. If something looks really dicey, you can always ask
So what can a small merchant to do protect theirfor a certified check or a money order. But a wire
business?transfer is NOT a safe alternative; lots of scams are
The most important thing you can do is simple. Inspectbuilt around fake wire transfers. And if you think for
every order. Here's what to look for:just one second that your own bank will back you up,
1. Compare the billing and the shipping address. Manyforget it. When, you take a bad order, no one but you
people send out gifts to others through an onlinewill be left holding the bag at the end of the day.
purchase so a lot of them will be legitimate, but this isThe only good news is that if you do take a good look
still the first thing to check for.at your orders, you'll catch a lot of the bad orders,
2. Always ask for phone numbers on your orderbecause most of them are really not all that difficult to
forms and ignore the gurus who'll tell you that this willspot.
increase your shopping cart abandon rate. It will, but