There are always fraudsters around looking for a weak spot or someone to take advantage of. In fact, at this time of the year, fraudsters are out in full swing. I should know since I have been hoodwinked. I can't say that I wasn't warned, but it had never happened to me before, so I wasn't watching for the signs. I was so upset about it that I actually considered closing up shop and moving somewhere, like maybe buying some
Wilmington NC real estate or maybe going to Mars. Speaking of signs, what are they?
One of the things I have learned in having a merchant account is that if your customer is shipping to a different address other than the billing address on their credit card, you are not protected as a merchant if they decide to do a charge back. That in itself is a bummer since practically 60-70% of online purchases are sent as a gift to someone other than the purchaser. What I have been trying to find out is whether merchants can get some type of insurance for credit card fraud, something to protect the merchant.
So, speaking of different billing/shipping addresses, it has been suggested that three things match when verifying a credit card. You should make sure the address matches, the zip code matches and the 3-digit verification code on the back of Visa, Master Card and Discover cards match. For American Express, the CVV code is the four digits on the front of the card above the actual credit card number.
If any of these three qualifiers does not match, then it is time to find out why. It may be something as small as the customer putting in a typo, but it could also be fraud. One thing a small business, especially a small business that is just getting off the ground, wants to avoid is having to take a loss for fraudulent transactions. It is a real bummer. Not only are you losing out on the charge back, you will more than likely be charged a fee from the merchant company that provides you the privilege of processing credit cards. You will also have lost out on the actual product. It will have been sent to the shipping address and the person on the receiving end may or may not be a part of the scam.
In my case, the receiver seems to be part of the scam, but there is no proof. The police are still investigating and the verdict is not in yet. In the meantime, I have a black mark on my merchant account now.
So, keep these few things in mind when accepting credit cards. There is a lot of education on the internet about this. Look before you leap. Get to know your rights as a merchant and protect yourself, sometimes even at the cost of losing a sale. In the long run, it's better to make money than to have fraudsters use you and your website as their playground.
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