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Many businesses are more worried than ever about credit card fraud. The same is true for chargebacks. Both of these issues can result in lost revenue. When it comes to chargebacks, some of the most common causes include credit card expiration, double-charging, bank error or a dispute with a customer.
If you're concerned that one or both of these issues may negatively impact your business, the good news is there are several preventative steps you can take.
1. Always Verify CVV2 and CVC2 Numbers
According to Visa, this strategy will not only effectively reduce chargebacks by at least 26%, but it can also help minimize pass-through charges. Depending on the specific card, this number should either be 3 or 4 digits long.
According to Visa, this strategy will not only effectively reduce chargebacks by at least 26%, but it can also help minimize pass-through charges. Depending on the specific card, this number should either be 3 or 4 digits long.
2. Make Use of the AVS Address Verification System
This will ensure that the entered address in an order form matches the address of the credit card’s billing address. This will prevent unauthorized users from making orders since they don’t know the exact billing address of the real cardholder.
This will ensure that the entered address in an order form matches the address of the credit card’s billing address. This will prevent unauthorized users from making orders since they don’t know the exact billing address of the real cardholder.
3. Be Cautious About Orders from Developing Countries
A large percentage of online fraud comes from countries like Russia and Indonesia. While an order you receive from one of these countries may be completely legitimate, it's worth your time to verify that's actually the case.
A large percentage of online fraud comes from countries like Russia and Indonesia. While an order you receive from one of these countries may be completely legitimate, it's worth your time to verify that's actually the case.
4. Make All Customers Aware of the Name that Will Appear on Statements
Many businesses encounter problems as a result of a different name showing up on customers' credit card statements. Since this can lead to customers filing chargebacks because they think they've been ripped off, be sure to educate them about what they're going to see on their statement.
Many businesses encounter problems as a result of a different name showing up on customers' credit card statements. Since this can lead to customers filing chargebacks because they think they've been ripped off, be sure to educate them about what they're going to see on their statement.
5. Consider Requiring a Signature on Delivery
While it may not be the right fit for every single business, if you're concerned about delivery issues, your best option may be to require customers to sign upon receipt.
While it may not be the right fit for every single business, if you're concerned about delivery issues, your best option may be to require customers to sign upon receipt.
6. Don't Be Afraid to Ask for a Credit Card and ID Copy
If a transaction comes along and you're on the fence about it, you need to remember that in the long run, it's much better to be safe than sorry. Although you may be worried about inconveniencing a customer, if an order seems off, there's nothing wrong with you asking for the buyer to send you a copy of their credit card and ID via fax.
If a transaction comes along and you're on the fence about it, you need to remember that in the long run, it's much better to be safe than sorry. Although you may be worried about inconveniencing a customer, if an order seems off, there's nothing wrong with you asking for the buyer to send you a copy of their credit card and ID via fax.
7. Display a Warning Message
Although you don't need to throw up a large banner that makes your entire site look intimidating, you can include a warning message within the payment processing part of your site. By telling visitors that you have measures in place to detect and stop fraud, you can make fraudsters think twice and assure legitimate customers that they'll be safe on your site.
RELATED POST: How to Spot a Phishing Email
Although you don't need to throw up a large banner that makes your entire site look intimidating, you can include a warning message within the payment processing part of your site. By telling visitors that you have measures in place to detect and stop fraud, you can make fraudsters think twice and assure legitimate customers that they'll be safe on your site.
RELATED POST: How to Spot a Phishing Email
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*by andreascy*
