The act of fraud has moved beyond simply passing a bad check at the local grocery store and is now global in scope, which means business owners with an online merchant account need to know the best ways to protect themselves.

To make sure you are covering all aspects of your online business, it’s important to put in place key preventative measures that can help safeguard your merchant account.

Tips to Get Started

Secure a Geolocation by IP Address:
In the world of e-commerce knowing the specific geographic location of an online buyer is critical, and Geolocation by IP address can help. This tool enables you to pinpoint the location where the product is being purchased, and see if it matches with the billing address. This is also known as Address Verification Service or AVS. A Geolocation IP Address is also great for analyzing online orders overall, and getting a sense of what percentage may be a problem.

Verify that the Phone Number and Zip Code Match:
Often a merchant will discover orders with an invalid zip code. If a process is in place to verify this during the initial order, it’s easier to side step a fraudulent sale. Most online payment gateways will check the zip code and street address of the credit card you are processing to make sure it matches the billing address of the cardholder.  Also double check that a phone number is not just a Voice Over IP phone but an actual brick and mortar location or legitimate cell phone. Delay payment until a clear match of this information can be established.

Call to Confirm the Validity of a Credit Card:
If an online merchant has any suspicions about an order, its best to call the issuing bank and confirm the general account details. This will ensure the card is not stolen.

Verify the E-Mail Address:
Be aware of temporary, throw away email addresses. They are usually free, although not everyone that uses a free email account is fraudulent. It’s best to ask for additional information from these transactions just to be sure.