There is an increased risk of fraud with accepting cards and this is more prevalent with Card Not Present transactions (transactions where the cardholder is not at your business with their card) as you cannot verify that the person using the card is the owner of the card.
Unfortunately, chargebacks are part of accepting cards and they cannot be avoided completely, but you can ensure that your card acceptance procedures minimise any risk to your business.
If you are ever suspicious of a transaction, you can perform some additional verification steps to help verify that the person giving you the card number is the real cardholder. An authorisation only confirms that funds are available at the time of the transaction and that the card has not been reported lost or stolen. It does not guarantee that the person quoting the card number is the owner of the card or is entitled to use the card.
- Obtain the full card details including the CCV.
- Verify the delivery address on White Pages online.
- Try contacting the telephone number provided to confirm the order.
- Be mindful of unusual large orders especially if the order is to be shipped overseas.
- Set up internal sale controls to limit the number or payments and value of transactions allowed each day/week by the same customer.
- Be cautious of customers who wish to pay with multiple cards.
- Always use your own courier if you are sending out items.
- Always perform a refund to the same card in which the transaction was originally charged.
If a sales opportunity is too good to be true, it potentially could be. For more information, please visit our Agreement & Guides page. If you have any doubts, you can always contact our helpdesk on 1800 243 444 for further assistance.
