If your business processes credit cards or debit cards through a website shopping cart, the actual card cannot be swiped or dipped. That type of transaction is referred to as “card not present.” From a security standpoint, this type of transaction contains the most risk for you as a business owner. So, what can you do to protect your business from fraud? While there is no perfect solution, you can implement some best practices to minimize your risk when processing credit cards and debit cards via a website shopping cart. Here are 10 ways to stay SECURE when accepting credit cards online.
- Require full details from cardholder– Make sure your shopping cart requires full name, address, phone number, and email address. If the billing address is different from the shipping address, you should follow up with a phone call. If you cannot reach the customer, or the reason for the different addresses seems odd, you should consider not proceeding with the transaction.
- Verify card information– Collect the account number, expiration date, and card security code. Make sure you include the expiration date and the card security code with your transaction authorization. If either doesn’t match or receives a negative response, you should cancel the transaction.
- Authorize every transaction– Make sure you receive an approved electronic authorization for every transaction.
- Don’t use voice authorizations– If you cannot obtain an electronic authorization, try again later. Avoid using voice authorizations because they can’t be used to help fight a chargeback.
- Don’t force authorizations– If your electronic authorization is declined, request an alternative payment method. Do not force the transaction because you won’t be protected in case of a chargeback.
- Use Address Verification Service (AVS)– AVS compares the billing address provided by your customer with the billing address on file with the card issuer. If there’s an AVS mismatch, you need to determine if a data entry error caused it. You should cancel the transaction and contact the customer.
- Add other fraud detection tools to your shopping cart– Contact your gateway provider about their fraud detection tools. An example would be Velocity Filters that detect when the same card makes multiple purchase attempts within a given timeframe or when there are numerous purchase attempts from the same IP address.
- Add a CAPTCHA code to your shopping cart– CAPTCHA codes help verify that the card is entered by a person instead of a robot or a program. http://captcha.net
- Settle transactions daily– A daily batch settlement is an easy way to reduce higher transaction fees (after 24 hours your rate goes up!) and reduce disputes from cardholders.
- Trust your instinct– A situation that seems too good to be true, or a customer placing a large order under odd circumstances, should raise a red flag and prompt follow-up questions. This is not to say that everything out of the norm is fraudulent. However, being proactive and asking questions when a situation doesn’t make sense can help minimize your risk of fraud or chargeback when processing cards online.
Want to learn more about pro-active ways to help reduce your risk, increase your savings, and grow your business, contact us today. Let’s talk about creating a true business partnership that will help you meet and exceed your goals.
Contact Chris Morgan 918-293-1755