How To Avoid Internet Credit Card Fraud
Posted by Harrace, Senior Internet Marketing Coach
Last week, we received an order for e1Net Wireless mouse rechargeable for 7 units, from a customer in Taiwan.
Here is the order:
As an experienced Internet marketer, I noted something fishy in this order. So I instructed my account person to call this person to verify the order, who managed to speak to the customer on the phone. This customer said he used his friend’s card to pay for the purchase. However, I am still not satisfied and instructed our receiving bank to check with the card issuer’s bank to verify the transaction with the actual card holder. Guess what?
This has proved my suspicion is correct. It’s a Internet credit card fraud as the card holder disputed the transaction. So I have successfully avoid the credit card fraud. But for the not so savvy online sellers, they may fall prey of the card fraud.
With more than 7 years of online selling experience, I would like to share how you can avoid credit card fraud, by taking the following steps:
1. Check for any signs of unusual circumstances, e.g
- order for mulitiple units
- use of free web-based accounts, e.g. hotmail, yahoo or gmail
- name of sender / recipient different from the credit card holder (this information may not be available if you used a 3rd party payment provider, or use VISA/MasterCard verified system, which eOneNet is using now)
- order from Nigeria
- the order amount is big, e.g if over a few hundred US$
2. If any of the above circustances are present, then you should take the following steps to verify the transactions:
- Call the customer. If the phone no. is not working and no such person, then this is a clear sign of fraud. But now the fraudsters are more intelligent, like this case, we called this person with the phone no. provided successfully. So why they dare to provide real phone nos? It’s because in a lot of places, you can register for a pre-paid mobile phone sim card, without registering your name.
- Request the customer to fax you the credit card copy (front and back) and sign on the faxed copy.
- If still in doubt, ask the payment provider (or if you have your own eCommerce merchant account direct with the bank, like eOneNet, ask your merchant bank) to verify with the card issuer of the bank.
If this is not possible, do not accept the credit card payment and insist for TT (telegraphic transfer). If the sale is genuine, the customer may accede to your reasonable request. Otherwise, you may deliver the goods at your own risks.
If the transaction amount is big, e.g. a few thousand US$ or it’s B2B, the normal mode of payment is TT, so there will be no issue of credit card fraud.
Have you encountered any credit card fraud? Or if you have any tips to avoid card fraud, you’re welcome to leave comments here.
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