Plastic money, in general, and particularly credit cards have changed the way we shop. The convenience, security, and sheer comfort of plastic money has left cash payments in its wake, and this has only been exacerbated by the widespread reach of the internet. Because looking at a mobile app or a webpage and hitting a few buttons is all it takes to purchase anything – from flowers to cars, internet shopping has taken both the United States and the world by storm.
The chief collaborator in this dominance is of course the credit card. Plastic money is the cornerstone of online shopping, and together, they have changed the trade world for good.
But it isn’t all sunshine and rainbows for business owners who have turned to ecommerce and creditcard processing. While e-commerce solutionshave ensured that online selling is a real and viable option for businessmen everywhere, it has also resulted in the aggravation of a long-termnuisance – chargeback and credit card fraud. The losses suffered through these issues have varied, but it has been universally recognized as a problem.
Well, there is a solution to every problem, and here’s how you can go about steering clear of these issues.
6 tips to keep chargeback and credit card fraud at bay:
1. Follow Protocol
Make sure you check the basics like what deliveryaddress has been provided by the client and whether or not it matches the card holder’s address. Also check if the client’s Internet Protocol (IP) address indicates their presence in the vicinity of delivery address, or at the very least in the same country.
2. Layered Protection
Asking potential consumers to fill in not just standard details like name, address, and phone numbers, but also taking advantage of the presence of CVV2/CVC code is well worth it (even though it may feel like hindering the sales process). Putting up all these protective barriers means the window for getting duped is reduced substantially, and while it could possibly turn away a handful of potential consumers, most e-shoppers will be used to the process and won’t begrudge it.
3. Go with your Gut
If you instinctively feel there’s something shady about the order you’ve received, there’s no harm in conducting a little cross-verification before processing it. Usual red flags include unnaturally huge orders, obscure e-mail ids, addresses that don’t match, and even rushed deliveries. In these situations, there’s no harm in asking the client a few leading questions to verify their genuineness.
4. Use Authentication
This should be a no-brainer but a lot of people ignore it because of the small fee attached. These authentication options are offered by credit card processing firms themselves, and are among the most thorough methods for vetting potential clients. Get on board, because you’d rather lose a tiny percentage of certain sales than suffer a massive loss through fraud or chargeback, right?
5. Get Onboard with PCI and DSS
As merchant account provider CreditCardProcessing.com explains, “PCI and DSS stand for Payment Card Industry and Data Security Standards. These are requirements related to payment account data security. The purpose of these requirements is to ensure the adoption of the industry-wide data security measures. All merchants are subject to compliance and at the very least, merchants must complete a PCI DSS self-assessment questionnaire annually. A quarterly scan may be required if your processing system has internet connectivity or you electronically store your cardholder’s information. There is a yearly fee for becoming PCI DSS compliant, but if you are already compliant, you will not be charged any additional PCI DSS fees for the remaining calendar year.” Being compliant adds an extra layer of security to your e-commerce operations, which is worth remembering when making a decision regarding PCI and DSS compliance.
6. Put Customer Service at the Forefront
Often, chargeback and some cases of fraud are borne out of ill will or frustration. Clients who have been treated badly often exercise their right to chargeback, sometimes even when they aren’t completely dissatisfied with the product. Remembering that your relationship doesn’t end when the transaction is complete, and running a smooth customer support program, will go a long way towards preventing these petulant chargebacks and fraud attempts from vengeful consumers.
Make sure to keep these tips in mind if you plan on operating your business on the internet. After all, the internet is a great place to conduct your trade, and as long as you protect yourself from potential pitfalls, you can ensure that your business will bloom.