As online business, you are open to Credit Card Fraud. To be honest, there is no 100% mechanism to stop fraud. But there are some tips to minimize the fraud:
- Some countries have much higher risks than others when doing business overseas. Watch the orders originating from overseas countries
- Watch bulk orders. Criminals will commonly order in bulk
- Watch orders with different shipping and billing address
- 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
- 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)
- 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.
- Build a fraud score system with all above information and previous orders (good or bad)