As most Canadian business owners know, there is a long list of benefits of accepting credit cards as methods of payment. The increase of sales, growth of customer bases and overall greater reputation represent three of the greatest advantages of being plastic-friendly. There are times, however, when accepting credit cards can be a bit tricky. For example, there are times when the credit card won’t actually be present for the transaction.
We’re not talking about a person entering a store and trying to buy something without having any means by which they can pay. We’re referring to times when credit card information is provided in other ways such as over the phone or online. Such “card-not-present” transactions carry with them higher risks of fraud. As a result, there are a few important steps that merchants should take to ensure that fraud isn’t being committed.
Here are four:
1. Verify the customer’s billing address. In many instances, items being ordered over the phone or online will require shipping. Therefore, you’ll obviously need an address. Be sure to confirm with the customer the address on his/her account. “Want to make sure the person trying to purchase something remotely is the authorized account holder?” asks Sarita Harbour on BusinessNewsDaily.com, “One simple way to check is to ask that person to verify the billing address of the account.”
2. Make sure that the billing address and shipping address match. What happens in the event that someone wishes to ship an item to a location other than the billing address attached to the credit card? Such a case may indicate a fraudulent charge. “If your business ships goods to buyers who have paid with a credit card online or over the phone, take a look at the shipping address versus the billing address,” says Harbour.
3. Collect all pertinent payment information. To complete a card-not-present transaction, you’ll need the cardholder’s name, the credit card account number and its expiration date. You’ll also want to get the CVV or CID number. A CVV is the 3-digit code found on the backs of Visa, MasterCard and Discover credit cards. A CID number is the 4-digit code printed on the fronts of American Express cards.
You’re not finished. As previously mentioned, you will also need the cardholder’s full billing address and shipping address, if necessary. You’ll also need the payment amount and the payment date. Remember that the payment must include all applicable taxes. Finally, you’ll need to confirm exactly what product and/or service is being purchased. Obviously, you’ll want to fulfil the order correctly once all of this is done.
4. Perform an internal fraud screening. “You need to develop a fraud screening system, or obtain one from a third-party vendor,” advises the UniBul Credit Card Blog, “This mechanism will, if certain predefined high-risk characteristics are found, suspend the processing of the transaction at issue. Such services will help you verify the validity of both the cardholder and the card.”
At Canadian POS Corporation, we make accepting card-not-present transactions quick, safe and easy. Using Converge, our virtual terminal system, you can convert any web-enabled computer into a cost-effective payment terminal. Simply logging in and inputting all of the pertinent information will help you to secure credit card transactions without a need for the credit cards themselves.
For more information, give us a call at 1-877-748-2884 or email us at info@localhost.