Card not present transactions are definitely becoming the most popular way for consumers to shop, but what does that mean for merchants? To be honest, it means that the risks involved are only going to grow — especially when it comes to maintaining secure payment processing services.
Here are just a few ways that any online merchant, regardless of size or business industry, can enhance the security of their online sales for card not present transactions:
- Ask customers to provide payment details when paying for a product online with a credit or debit card; this should include the security code on the back of the payment card, as well as the address for billing information. If someone is making a purchase with a stolen card number, they might not have all of this information handy.
- Asking for verification before processing the payment in card not present transactions is another good way to avoid processing fraudulent purchases altogether. This typically includes email or text message verification from the customer.
- If you find that your business is processing too many transactions each day to manage order confirmation messages, try setting up a system which filters out purchases made internationally or large purchases above a certain amount.
- Whenever possible, try to double-check any purchases where the billing address differs from the shipment address; this is a red flag for fraudulent purchases, and even more so when the shipping address is located in another country.
- There are different types of software available to verify purchases, and that includes software specifically for online merchants! Make sure to do some research in order to find a third-party software provider that can meet the needs of your business.
Now we’d like to hear from you! What are some of your best tips for increasing the security of your online payment system?