National Debit Card Network presents six easy steps merchants can take to prevent credit card fraud
Rich Placa, Manager of Underwriting and Risk Management at National Debit Card Network, presents six steps merchants can take to prevent credit card fraud from dishonest customers:
• Verify address and CVV code - Verifying the address and CVV code provides the confidence that the credit card is in the possession of the cardholder you're dealing with and a positive address match should mean that you are shipping the product to an address recognized by the issuing bank.
• Be wary of suspicious International Sales - If Address verification cannot be performed and it is difficult for your merchant processor to verify the sale in question, ask yourself, does the sale make sense? Why does this individual have to buy the product from you and not someone closer geographically?
• Stay abreast of fraud trends/scenarios - Take the extra step if approached on a Teletypewriter (TTY) line. Unfortunately, another popular method for taking advantage of a merchant is using this device to shield one's identity. Look for the warning signs and take the proper steps to verify the sale.
• Never send money to the cardholder - There should never be a reason you would need to refund money via bank or other wire service. If the cardholder even broaches this subject, walk away!
• Never hesitate to contact your merchant provider and request a Code 10 - A Code 10 authorization request is to be utilized if a merchant is attempting to process a credit card and suspect's fraud or suspicious activity. This request is forwarded to the card issuing bank from the merchant processor so information can be verified before the sale is processed.
• Follow your instincts - Unfortunately, at National Debit Card Network, we receive emails and calls from hundreds of merchants who have been victimized stating that they "knew it didn't sound right" OR "it was too good to be true" yet still completed the transaction against their better judgment.
Rich goes on to say that, "No one knows your business and the types of sales you process better then you do. If you are approached for a sale that doesn't feel or sound right, walk away. Seek a different form of payment or at the very least, contact your risk department and have them take steps to offer you an opportunity to make an informed decision."
About National Debit Card Network
The National Debit Card Network a leading international provider of electronic payment solutions and related merchant services for independent business owners in the U.S. and Canada. The National Debit Card Network offers a diverse suite of profit generating solutions that include credit and debit card processing, equipment leasing, gift cards, loyalty programs, cash advances, check approval services.