Studies show that credit card fraud, while a significant problem, affects only a tiny percentage of online purchases. Therefore, applying a "one-size-fits-all" approach with unintended negative consequences makes no sense. Therefore, a balance must be struck between prudence and practicality.
This can be very annoying for the buyer because it is fraudulent and delays shipping, which can lead the customer to cancel the order and not return it. In addition, some sellers reject everything but this automated method because it "takes too much time," because they don't have the staff to implement it, because it "doesn't fit our approach," and so on.
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What is suggested in this article requires more effort, attention to detail, and a change of mindset. However, the techniques presented will help protect against fraud without harming and losing a legitimate client.
Start by checking your records of "suspicious orders" (see below). (If a buyer's information appears in these logs with details of the action taken, you are en route to wiping out a likely issue and can address it appropriately.)
Be careful if the billing address and delivery address are different. However, there may be valid reasons, especially if the billing is to a P.O. Box number, but the goods are shipped to a physical address. In the author's opinion, and despite the banks' advice, automatically rejecting orders with a P.O. Box address is another way to annoy the customer if an excellent explanation is provided for this policy.
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All customer orders should include a phone number and e-mail address so the buyer can be called quickly in case of suspicion. If a connection cannot be made or is made with a strange voice message, this is a clear red flag. Another method is to use number-tracking software to see if there is a match. If not, ask for the cancellation of the order (this solution is available on the Internet).
Buyers who use dubious e-mail addresses should be considered scammers. Most honest people have identifiable addresses, such as personal or business names. Of course, the seller can and should quickly send a simple message asking for confirmation that this person placed the order. Then check to see if the news returns or has no response. If the address refers to a company, it is easy to look it up online. If it is not found, it is good to become suspicious.
Ask a trusted person to call the buyer. Although you can also contact them by e-mail, personal contact is more likely to yield positive results and provide a better opportunity to assess the situation without offending a legitimate buyer.
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The request MUST be justified. Any reasonable person will understand if the request is made (a) promptly, (b) politely, (c) without drawing adverse inferences, and WITHOUT giving the impression that the problem concerns that particular customer.
A little "white lie" seems entirely appropriate. Instead of saying something that could be interpreted as an accusation, it would be better to say, "We have a problem with our systems and cannot process your payment through no fault of our own." "Do you have another card, or can you pay with a wire transfer?
Any negative response is a "red flag" and allows the seller to reject the order "for technical reasons and with regret."
Always ask for the name of the customer's bank. Then, everyone using a stolen card will likely know the answer.
Ask for "verification" for high-value transactions. This is a service provided by VISA and Mastercard where the customer has a password approved by their bank. The buyer must register for this service, but a legitimate buyer will likely accept.
