4 Tips for Card Not Present Fraud Detection

Merchant account providers

How can merchants keep their customers safe but also protect their own businesses from card not present fraudulent transactions? Here are just a few tips that any small business owner can use for lowering their risk and liability in card not present transactions:

  • First, it’s important to use a secure payment processing system that has software specifically designed with card not present fraud prevention and detection. This software might cost you a little more than regular payment gateway services, but it’s absolutely essential for e-commerce sales.

  • Also make sure that your employees are trained on the system and know the warning signs of fraudulent charges, malware threats, and other digital dangers that might sneak in through your credit card payment system. Always give your employees the proper training after you upgrade or replace your payment system.

  • Now onto the process of eliminating fraud when customers are making purchases! Make sure that your payment system asks for enough detailed information that will make it difficult for a credit card thief to complete the purchase. Besides just the card number, make sure to ask that your customers also provide the security code on the back of their payment card.

  • Additionally, try to monitor the purchases (or use a credit card processing system optimized for card not present transactions) that will be able to detect any variations in purchasing patterns for repeat customers. If you think something doesn’t look right — maybe the shipping address is different, or maybe the order is really expensive — don’t be afraid to contact the customer and ask for confirmation that they did in fact make the purchase.

Remember, it’s imperative to protect your customers and all of their personal information — and by protecting them, you’re also protecting your own business as well.