If your company operates with mail orders or telephone orders or even e-commerce it is vital that you are aware if how to protect your company from fraudulent transactions and chargebacks.  Due to the nature of your business being MO/TO, this tends to be the type of business that attracts the most fraudulent transactions and so you must follow all the protocols you can to help protect your business against fraudsters.

Many business owners ask for tips on how to make online transactions more secure. One thing to enforce is the CVV number. It is a three or four digit security code on your credit card. If your customer is prompted to enter that and it matches the security code on file the transaction goes forward, if it doesn’t match it is flagged and the transaction is halted. The only drawback to this free feature is that thieves can easily have access to the security code number if they have your credit card, if they have only stolen the number this service works well.

Another way to secure you online transactions as a company is to make sure you are aware of and using the AVS (address verification service). Once again this is a free service company’s need to make use of. This feature checks and monitors that billing addresses for online transactions match the billing address the bank has on file. This way a stolen credit card could not be used unless the person had access to the owner’s mailing address. It cuts down on fraud but does not completely stop it.

The best advice and safest way to conduct online business is to use a sign-on-delivery system provided by your shipping company. This will mean your customer must sign and show identification when receiving goods through the mail. It is the best way to provide safe and secure shipping in the business world.

If you follow the above tips you should be able to greatly reduce your chargebacks from your merchant account provider.  This is key because if you end up with too many chargebacks you find your account terminated.

No related posts.