Card-not-present fraud is predicted to accelerate this year as many consumers switch to chip enabled credit cards. Criminals will flee to the internet because it is much harder to verify the identity of cardholders online than at the POS. Luckily there are a variety of tools available to help merchants fight fraud and maintain profits. The following are seven easy steps for processing card-not-present payments.
- Collect the Payment Information. Ensure that associates are collecting a complete profile of customer information to be submitted with every transaction. Always attain the customer’s name, the full card number and all of the card’s information, the total of the payment, and an accurate description of purchased items.
- Participate in MasterCard SecureCode and Verified by Visa (VbV). These services add another layer of protection for merchants that accept payments on the internet.
- Be on the Look out for Fraud. Develop a fraud screening system or hire a fraud monitoring service to flag suspicious account activity. Suspend and investigate flagged accounts as soon as possible.
- Obtain Authorization. Always get authorization from the card issuer. This is permission from the card issuing bank to accept payment.
- Don’t Forget the Electronic Descriptor. This descriptor categorizes the transaction type for the banks. Always state if the transaction is “Mail Order,” “Internet Order,” “Telephone Order,” or “Signature on File.”
- Post Return Policies and Customer Service Points of Contact. Give your customers clear return policies and visible ways to contact your business. Tell customers what delivery methods to expect and accurate delivery dates. Communicate when deliveries will be late or delayed.
- Deposit Transactions after the Shipping Date. Card-not-present transactions should not be deposited until the shipping date. Also avoid being late with your deposits.
As card-not-present fraud increases, merchants that sale online merchandise must follow more processes that make it difficult for fraudsters to cheat card owners. eMerchantBroker provides fast and effective merchant solutions for high risk merchant accounts. EMB offers Chargeback Shield, which monitors suspicious activity and notifies merchants if chargebacks occur. EMB reduces the amount of chargebacks by 15-30% every year.