| As the head of Risk Management for a large credit | | | | Unfortunately, another popular method for taking |
| card processing company, this is a question that I am | | | | advantage of a merchant is using this device to shield |
| posed with by merchants who accept credit cards | | | | one's identity. Look for the warning signs and take |
| every single day. With the current economic climate, | | | | the proper steps to verify the sale. |
| fraud claims are on the rise and pose a complex | | | | NEVER, EVER send money to the cardholder - A |
| challenge to more and more merchants on a daily | | | | self-explanatory red flag, there should never be a |
| basis. | | | | reason why you would need to refund money via |
| As a merchant, how do you protect yourself? | | | | bank or other wire service. If the cardholder even |
| Following these simple steps will certainly help: | | | | broaches this subject, WALK AWAY! |
| Verify address and CVV code - Sounds simple, but | | | | NEVER hesitate to contact your merchant provider |
| this is a step that is often ignored. A CVV Code or | | | | and request a Code 10 - A Code 10 authorization |
| CARD VERIFICATION VALUE code is a three or four | | | | request is to be utilized if a merchant is attempting |
| digit code located on the credit card itself and is a | | | | to process a credit card and suspects fraud or |
| security feature to help verify that the card is on | | | | suspicious activity. This request is forwarded to the |
| hand for "card not present" transactions. Verifying | | | | card issuing bank from the merchant processor so |
| the address and CVV code provides the confidence | | | | information can be verified before the sale is |
| that the credit card is in the possession of the | | | | processed. |
| cardholder your dealing with and a positive address | | | | Remember, we're here to help. Your risk is our risk |
| match should mean that your are shipping the | | | | and we only want you to process valid sales. Call us |
| product to an address recognized by the issuing bank. | | | | and we can recommend the best course of action. |
| Be wary of suspicious International Sales - Now I'm | | | | Ultimately, the last bit of advice I can provide is this: |
| not saying that all International Sales are fraudulent; | | | | FOLLOW YOUR INSTINCTS |
| however, it is important to realize the risks. Address | | | | Unfortunately, I have received emails and calls from |
| verification cannot be performed and it is difficult for | | | | hundreds of merchants who have been victimized |
| your merchant processor to verify the sale in | | | | stating that they "knew it didn't sound right" OR "it |
| question. Ask yourself does the sale make sense? | | | | was too good to be true" yet still completed the |
| Why does this individual have to buy the product | | | | transaction against their better judgment. |
| from you and not someone closer geographically? | | | | No one knows your business and the types of sales |
| Stay abreast of fraud trends/scenarios - More and | | | | you process better then you do. If you are |
| more, we see merchants being approached | | | | approached for a sale that doesn't feel or sound |
| for"humanitarian" causes with large purchases needed | | | | right, walk away. Seek a different form of payment |
| for orphanages, churches, etc. These are uncommon | | | | or at the very least, contact your risk department |
| for the business and are usually sent via e-mail. | | | | and have them take steps to offer you an |
| Merchants are provided with multiple credit cards and | | | | opportunity to make an informed decision. |
| are asked to split the sales to get them through. | | | | In the end, ask yourself this question: "Is this sale |
| These sales are often invalid. Take the extra step if | | | | really worth the hardship of associated fees, |
| approached on a Teletypewriter (TTY) line. | | | | chargebacks, and lost product? |