Credit Card Fraud Prevention for merhants

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:

  1. Some countries have much higher risks than others when doing business overseas. Watch the orders originating from overseas countries
  2. Watch bulk orders. Criminals will commonly order in bulk
  3. Watch orders with different shipping and billing address
  4. Track and watch the customer’s ip.
  5. Check customer’s geolocation of the ip to billing and shipping address
  6. Watch orders done with free e-mails
  7. Compare BIN code of the credit card to billing address
  8. AVS (Address Verification Systems) does help you correlate credit card with billing/shipping address
  9. Call the customer (This is where stands, does the automatic calling)
  10. Compare phone number with address. Although mobile numbers are non-geographical numbers, fixed line numbers convert to geographic information
  11. Keep a history of good or bad orders.
  12. Build a fraud score system with all above information and previous orders (good or bad)