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Tips on Preventing "Card Not Present"" Payment Frauds

In face-to-face transactions, the merchant may inspect the card to ensure whether it’s valid or not. There are also ways to verify whether a cardholder is an authorized user or not.

However, if card is not present at the time of transaction verification becomes tricky. It happens when payments are made online or accepted by mobile. Below are some useful precautions that can help high risk merchants prevent payment frauds in the absence of a card.

1. Verify contact number and transaction details: Do not ship your product until you have verified the buyer’s phone number and the transaction information.

2. Analyze shipment request: Too costly shipment request could indicate a fraudulent attempt. If the buyer is not bothered about hefty shipment cost, make sure you double check his details to prevent fraud.

3. Observe patterns of repeat customers: Validate orders of frequent customers. If their shipment or billing address deviates, or every time they place order from a different IP address, it might indicate payment fraud.

4. Avail Address Verification Services: Make use of Address Verification Service (AVS) to verify if the address, contact and the transaction information of the past customer has been deviating.

5. Verify Card Validity: You can verify that the customer possesses a valid card during card-not-present transaction, through card security codes like CVV2, CID etc.

6. PCI Compliance: The merchant has to be compliant Payment Card Security Data Security Standard (PCI DSS). The PCI compliance maintains data security management, policies, procedures and other security measures.

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About the Author

Jason Simms,
1722 E. University, Suite 3
Las Vegas, NV 89120

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