Credit Card Processing Blog

Best Ways to Protect Yourself Against Credit and Debit Card Fraud

October 19, 2016 10:00 AM / by Reliance Star

Modern thieves are becoming more and more sophisticated when it comes to credit and debit card fraud. This makes it even more important that your business does everything it can to protect your customers from card fraud. Luckily, there are a number of ways you can work to protect your customers.

Install an EMV Chip Card Reader

For physical retail locations, this is the best way that you can offer data security to your customers. The EMV chip is virtually impossible to replicate, making it more difficult for fraudsters to clone customers’ cards. However, the main drawback to this system is that it only works in physical locations, not online. Read on for other ways to protect your customers when processing online purchases.

Obtain Full Card Details

Rather than simply requiring a credit or debit card number from your customers when they make purchases, you can increase security by requesting all of the information associated with the card, including the security code on the back, the expiration date, and the full name and address associated with the account. Thieves are less likely to have the full details, particularly the customer’s address, so this can discourage them from attempting to use fraudulent cards.

Take Care with Different “Ship To” Addresses

When a customer requests that a product be shipped to a different address than the billing information, it could be a sign of potential fraud, so extra precautions should be taken in this case. Obtaining phone numbers for both addresses can help you to verify the information, as can watching out for possibly fake billing addresses, like 123 Main Street. Different billing and shipping addresses are not always fraudulent, as customers may be purchasing the item as a gift, but it is better to be overly cautious than to risk exposing your customers to fraud.

Watch Out for Large Orders Requesting Next-Day Delivery

Again, this is not necessarily indicative of fraud, but it can be a warning sign alerting you to take extra care. When using a fraudulent credit card, thieves want to get the products as quickly as possible so that there is less chance of the fraud being discovered in time to stop the order. In addition, because the thieves are not planning on paying for the products, they are more likely to attempt to make large purchases.

Request Additional Information

If you are worried that a transaction might be fraudulent, you can verify the information for asking for additional proof from the customer. You can ask for a scanned or photographed copy of the customer’s credit card or government-issued identification. Since thieves are not likely to have the customer’s identification, they may give up without making a fraudulent purchase. A real customer would be more likely to continue with providing the requested information.

Prevent Future Fraud

As soon as you have discovered that a transaction is fraudulent, report it to the police. You should notify the customer’s bank as well so that they can alert the customer to the fraud attempt. Whenever possible, you should encourage the customer to report the incident to the police as well. Thieves and fraudsters keep trying because they are often not caught. The greater vigilance you have over these situations, the greater the chances of stopping those behind the fraud. 

While it may not be possible to avoid all credit card fraud as thieves keep finding innovative new ways to cheat the system, it is important to be aware of what is going on so that your business can do everything it can to protect itself and your customers. The more aware you are, the more likely that you will be able to stop fraud before it happens.