HIGH RISK MERCHANT ACCOUNT TIPS
Once a businessman gets a
merchant account, he/she will have to
take essential precautions in order to
avoid fraud and chargeback. Following
are a few tips to be followed after
opening a merchant account:
-
Collect CW2 and CVC2
Verification Numbers – This tactic not
only reduces cases of chargebacks, it
also reduces pass-through fees which
could be charged after an order from a
credit card is processed. Behind the
MasterCard, Discover and Visa credit
cards, there is a security code of 3
digits which is located at the right
side of the credit-card number. Asking
the customers to enter this code acts as
an added verification measure. Most of
the internet payment processors are
known to provide support for entering
these security codes while processing
orders placed through a credit card.
These details can be obtained from
payment gateway providers.
-
Using AVS (Address
Verification System) – The AVS service
ensures that the address mentioned on an
order form is the same as the one where
the billing accounts of a card holder
are sent to. However, this service works
only for orders conducted in America. If
the AVS service is not used while
processing transactions will result in
shelling out higher processing fees.
-
Scrutinizing orders made
from developing countries – Most of the
fraudulent online deals happen from
countries such as Russia, Indonesia, and
other developing countries. The orders
made from these countries can be
accepted at the trader’s risk till the
time a universal AVS service is
developed.
-
The customers should know
the name that appears on statements –
Many dealers who use third party
processing firms run into problems. This
is because the name that appears on the
monthly statements of a cardholder is
usually the third party processing
firm’s name and is not the firm’s name
from which the cardholder has made a
purchase. This may not always happen,
but it does occur in many instances. It
is best for the customer to know which
name will be appearing on their
credit-card statement to avoid
confusion.
-
Suspicious orders should
be handled accordingly – If any order
appears suspicious, it is best to either
e-mail of call the customer in order to
verify if the order was actually placed.
-
Check out for orders
placed from free e-maid IDs – It is
better to be careful before accepting
orders from people using a free e-mail
address, since it is difficult to track
them. It is always easier to find people
using a company’s website e-mail
address.
-
Signatures upon delivery
– If the business involves delivering
products, it is better to utilize a
carrier which requires signature after
delivery. It should also allow the
trader to have one copy of this
signature. It is advisable to maintain a
record of these signatures.
-
Ask for a fax copy of
credit and ID cards – This tactic is
considered best in a
business-to-business sales environment.
-
Post a word of warning –
posting a word of warning on the order
page will deter people from making
fraudulent orders and also helps in
reducing fraud instances.
Contact
one of our helpful account
representatives to assist you in the
setup of
a
high risk merchant account or
offshore merchant account for a
high risk merchant.
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