As online business, you are open to Credit Card Fraud, scam use or bad use. To be honest, there is no 100% mechanism to stop fraud/scam. However, there are some tips to minimize the fraud/scam:
- Some countries have much higher risks than others when doing business overseas. Therefore, watch the orders originating from overseas countries
- Watch bulk orders. Criminals will commonly order in bulk from a personal account rather than an established business account. In other words, a bulk order must arrive from a verified business account.
- Watch orders with different shipping and billing address. Above all, different countries must alert you immediately
- Track and watch the customer’s IP.
- Check customer’s geolocation of the IP to billing and shipping address
- Watch orders done with free e-mails
- Compare BIN code of the credit card to billing address. Nowadays, it’s better to use third-party payments systems rather than in house credit card processing.
- AVS (Address Verification Systems) does help you correlate credit card with billing/shipping address
- Call the customer This is where onverify.com stands, does the automatic calling. Alternatively, onverify.com can provide text based fall-back for verification.
- Compare phone number with address. Although mobile numbers are non-geographical numbers, fixed line numbers convert to geographic information
- Keep a history of good or bad orders
In conclusion, Build a fraud score system with all above information and previous orders (good or bad)