The safety of the consumers has always hogged the limelight when we talk about ecommerce solutions. However, the safety of merchants from fraudulent consumers is also very important.

This article provides a few methods for merchants to protect their interests.

  1. Review Orders Carefully – When you get an order from your customer, spend some time to review the order meticulously. Make sure to see that all the information that is required is filled by the customer correctly. Verify whether the information matches. In most cases a fraudulent order can get caught in this step.
  2. Credit Card, Shipping and Contact Information – The customer’s information given with the order should match the information with the card issuing bank. If the shipping address is different then you have to find out why the customer wants to ship it to another address. This sign is very good to catch a fraudster but beware that legitimate customers also sometimes ship to other places.
  3. AVS or Address Verification Service – This functionality is provided by all merchant processors. You are allowed to run the service on all the transactions to ensure whether the credit card details given by your customer matches with the details on the customers file in the issuing bank.
  4. Email Addresses that are Free – Most of the fraudsters use free email addresses so that they can hide their identity. To know whether an email address is free or not, visit the web site mentioned after the “@” symbol.
  5. Document All Contacts – To protect your self better against fraudulent customers, you have to document all the contacts which you have with them. Using caller ID is one good way.
  6. Domain Name Records – One efficient way to protect your self is to check the domain name’s “domain name records” which is used by them in their email addresses. This should match with the details they have provided. This method is less known among the merchants. However, this will work out only if they own the web site.
  7. Large Order Amounts – Take more precaution when you are attending high orders, especially in holiday seasons. Also be careful with those orders which use the fastest and costliest mode of transport.
  8. Fraudulent Notices – Place fraudulent images, buttons and notices on the order forms and content. Let your customers know how serious you are against fraudulent orders. By having such notices, some fraudsters might look for another web site.
  9. Telephone Search – There are databases of telephone numbers available in the market in the form of CD’s or web sites that offer such services. Doing a reverse search on the telephone number provided by your customer will protect you against fraud.
  10. Call the Customer – The final and most effective method to protect your self against fraud is to call the customer on the telephone number they have given. If the phone number is not valid then contact the customer through email and ask a valid number.

 By using one or a combination of these tips you will be able to protect your self better against fraudulent orders. 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.