Reducing Your Business s Risk of Fraud Relate

Reducing Your Business Risk of fraud related chargebacks

Credit card fraud affects all businesses, whether large or small. From large department stores to small mom and pop stores, statistics show that credit card chargebacks cost operators millions of dollars per year.

As hard as law enforcement agencies to credit card fraud, new criminals quickly to replace those who are caught and the trend continues its struggle to work. Therefore, it is to companies that all they can do to protect yourself from fraud related to credit card chargebacks. The question is: How do you do that?

There are a number of steps you can take to reduce losses due to credit card fraud. First and foremost, make sure that you keep all your customers’ orders precisely. If someone overseas order is thousands of dollars in goods and billing details do not match the shipping address, please do not take the bait. The pie-in-the-sky orders that seem too good to be true to maintain.

If something is wrong about an order, ask for identification and a further review. Although this is difficult, with internet orders, you can ask your customers that you fax a copy of the front and back of their credit card along with a copy of their driver’s license. Then, to ensure the card you are looking at not forged, you can contact the issuing bank to ensure that the name matches on the card the name of the person asking for the order.

The question is, how do you know which bank to contact to verify the card in question is legitimate? That’s where the credit card BIN comes into play.

A BIN (Bank Identification Number) is the first six digits of each credit card number. By using a BIN database and now also fits with the first six digits of a credit card to be able to have an entry in the database, you receive the bank’s name and phone number, and you’ll know what kind of card you have it here with (debit, credit, prepaid, etc.)

While these additional steps that take a little more time than just relying on your payment gateway for your protection, they are well worth the effort. Companies that are willing, these steps can dramatically reduce losses caused by credit card chargebacks.