Two Ways for Merchants to Protect Against Fraud
Whether you’ve been an ecommerce merchant for years or you’re just getting started doing business online, it pays to take precautions against fraud. To a great extent, merchants can take steps to avoid charge backs to their merchant accounts due to fraud. There are several ways to stay proactive when it comes to preventing fraud.
The first and perhaps most obvious place to start is by taking a careful look at your orders. If there are information mismatches on your customer’s order form, something could be up.
It isn’t all that uncommon for a customer to want to ship something to an address other than their contact address, but their contact information should match that on their credit card exactly. Many merchants rely on AVS services provided by their bank to automatically verify address information matches.
Another thing to look out for is disproportionately large orders. While large orders might seem like a dream come true when you’re trying to meet your sales goals, they will be very costly if the order turns out to be fraudulent. It’s always a good idea to contact customers who place very large orders to check for fraud or possible errors in order quantities.