Avoiding charge backs and credit card frauds
Sunday, May 18th, 2008As most of the transactions in commercial world today are carried out with credit cards or debit cards you are obliged to set up your paid or free credit card terminal for verification and authentication of such credit cards. However, like all other businesses there are always scope of fraud and deceit from both sides.
The customer may face fraud due to non-delivery of or sub standard delivery of goods and services while the provider can face similar situation when he is fed with manipulated credit card information.
Following a few set principles could absolve you of such troublesome situation. You must make it sure that you are dealing with a legitimate card holder before processing his or her card on all machines especially the wireless credit card machine where chances of such fraud is more.
One way to ensure legitimacy of the card holder is to verify and authenticate his or her signature. Obtain the detailed address of the card holder with his or her telephone number so that you can contact them when required or verify their background as customers.
Shipping should only be done to the billing address provided by the customer and you may also use the AVS features on your paid or free credit card terminal for authentication of the credit cards. Delivery should also be made through a ground carrier so that a receipt cans be obtained.
If you are dealing on the nets, your software should make queries about the address of the customer or card holder before concluding the transaction. It is always better to know the card holder properly before allowing the transaction to be carried out.