30 Second Fraud Checklist for Ecommerce Merchants

Credit card fraud and online ordering fraud has hampered ecommerce merchants since the first credit card payment was taken over the internet. Because fraud is still successful, and because there is virtually no way to go after someone you suspect of fraud, it is still a plague to website owners trying to run a business on the internet. Online fraud is especially troublesome to online retailers, because they end up losing twice, first when the merchandise they shipped is not recoverable, and second when the real cardholder makes a chargeback. Now they lose the merchandise and the money they would have collected for it. There are numerous fraud screening applications designed to help ecommerce merchants prevent accepting and shipping fraudulent orders. However, many ecommerce sites aren’t even covering the most basic of fraud screening principals.

Here is 10 items that should be checked on every order before shipping. If you do nothing else for fraud screening at least cover these basic principles to help prevent some of the more obvious fraud.

If any of these are true, it’s a good idea to further review the order, or contact the person making the purchase before shipping.

1.     Billing and Shipping Addresses Don’t Match

2.     Requesting Overnight Shipping

3.     Order is for Multiple Quantities of the Same Item

4.     Items Being Ordered are Mainly of High Value

5.     Order is for Uncommonly Purchased Items

6.     Different but Related Products Being Ordered

7.     AVS and/or CVV Verification Failed

8.     Customer Made Several Unsuccessfully Attempts Before the Transaction was Approved

9.     Customer’s phone number and/or email look unconventional

10.  Order is Being Shipped to Africa, Asia, or Eastern Europe

Read the original article at: http://www.merchantequip.com/merchant-account-blog/