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With the influx of Christmas orders coming up, it’s crucial that merchants are on alert for any possible fraudulent activity with credit card purchases. Here are few checks we recommend before fulfilling any customer transaction.
Be wary of unusual shipping addresses
Check whether the IP address of the buyer matches the card address location. This is not a 100% indicator of fraud as the shopper may be shopping from anywhere, but use your common sense with this one – if the card address is in the US and the buyer is in China then it’s worth checking out with a phone call.
Mr. Moneybags is not always your friend
If the buyer has made multiple orders for the same expensive product then this is a massive red flag and a sign that the order may be fraudulent. Give them a call and confirm, you’ll most likely know from that call whether it’s a fraud or not, i.e. if they get irate when asked for proof of identity.
If you see a caution, take caution
If there is a caution on the card from the credit company, you must call the card owner to make sure they’re aware the card is being used. Keep a log of all communication as you will need this in the case of any future disputes.
Carefully monitor orders placed outside the US
Countries such as Asia and Africa are melting pots of fraudulent activity and it’s important to be extra careful when dealing with orders from these locations.
Check Negative Lists
You can use these lists to check the address against a database of addresses associated with fraudulent accounts.
Install Fraud Prevention Software
Software programs such as Kount will scan your orders to check for the possibility for fraud.
Track your customer interactions
Keep a log of all customer interactions. This will be extremely helpful if dealing with a chargeback issue in future.