Credit Card Fraud – What You Must Know?

If you are a retailer, especially someone who sells merchandise online, the odds of your company being vulnerable to credit card fraud is extremely likely. For many companies, credit card fraud is a price that they apportion into doing business and they could even account for it in the way in which the price products – like how a company may account for bad or doubtful debts.

In the UK for instance, government published statistics show that credit card fraud has moved up from 83.3m a decade back to 504.8m before the introduction of the chip and pin plot. Chip and pin is a system where by a number is assigned to each credit card, meaning that the thief has to do more than simply fake a signature to complete a purchase with somebody else’s credit card. This was said to have reduced fraud by 13% since its debut.

With so many different types of credit card fraud, it is important to have a strategy to tackle each one. This report provides an insight into avoidance methods for well known methods of committing credit card fraud.

Card Not Present Fraud

CNP fraud is one of the fastest growing categories of fraud. The main reason for this is that it is becoming much more difficult to commit fraud in person, particularly with the introduction of Chip and Pin. As online credit card fraud increases there are a few measures that all retailers can take to make sure their related costs of being vulnerable to online credit card fraud can be reduced.

• Call back customers to confirm orders. Although this is also a Price Tag Centre, it may be utilised as a technique once the transaction looks somewhat out using the ordinary
• Pay attention to transactions where the delivery address and cardholder address are different
• AVS or CSC verification does not eliminate risks 100% but it eliminates the Capability for fraud to be achieved foundation solely on getting account details together with using the credit card in person.

Card Present Fraud

Card Present Fraud has become increasingly hard to commit, and as a Result it is no longer associated with being a white collar crime as is frequently the case with CNP fraud. In spite of this, face to face or swiped card fraud may still be a problem which retail merchants still have to take care of prtship carding. Following specific protocols can help limit the odds of you being influenced, and make sure your company is reimbursed by following the right procedures.

Lastly, big orders from overseas nations with US Billing address are always fraud so that it is far better to have these clients pay via western union or bank wire. Many times fraudsters will dictate a large order using a stolen credit card and by the time you have found that the card is stolen you sent the order.