Preventing Charge Backs on your site

< July 2, 2007 Websiteforge Updates

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July 11th, 2007 at 7:49 am star

It is becoming increasingly important to provide documentation on your fraud prevention business practices while you are accepting credit cards on a website. WF has provided an area with each order that you can write notes about a order with out the customer seeing them. This area you should use to write notes about the steps you take to make sure a transaction is real and not a stolen credit card. By doing this you have in effect implemented a fraud prevention policy which is the key to fighting a charge back from a credit card company. We all know that the credit card company's could make things more secure but they worry about losing customers so we are left on the hook. It is left up to us merchants to police this mess. Your documentation and fraud policy practice can and will be your saving grace to help you prevent a charge back. As seen below I have the steps I have taken on my site. I also have an example of the supporting documentation to back up my fraudulent prevention business practices.

(typed in the not seen by the customer field)

CCV Good

AVR Good

Ip trace Good

Phone call made to Bank and customer. Good. Ok to Ship BDS. Time is O700 date is July 11 2007.

(May Favorite) Customer was difficult rude and used threatening language do not ship any orders to this person.

Also you can use this area to make notes about difficult customers. This could protect you from denial of service claims later on.

How do I start a fraud protection policy?

My suggestion is this.

1. Implement a fraud protection policy for your business that is written down and all orders over a certain amount you should do a trace back and a reverse ip address look up to make sure it came from the area the order is coming from.

2. Get the telephone numbers of issuing banks and make a phone call to check to see if the card is stolen.

3. When in doubt about a order check it out.

Jerry at partsguyusa.com is a very knowledgeable person about this stuff too. Perhaps he has some tips we all could learn from here too.

As always,

Thank you for taking the time to read this.

Brian

Posted in Tips and Advice by Brian Shockley

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Jerry says:

July 11th, 2007 at 3:32 pm star

Anyone interested in fraud protection go to the website www.merchant911. They have all the tools you need on their website including ip address look-up, issuing bank phone# search and things to look for while processing credit cards. It is free to join if you operate an e-commerce store. They do accept donations if you feel their service is worth while. This is a community of e-commerce owners helping one another. Members also send out emails regarding what the scammers are doing on their site and tips to help avoid fraud. This is an excellent site to help us e-commerce owners. They provide excellent tips such as watching out for someone who uses all lower case in their customer information. The operator of the site also sends out email links to publications in regards to credit card fraud and changes in the credit card industry from sources like pc magazine and others.

Jerry says:

July 11th, 2007 at 3:35 pm star

The url is www.merchant911.org sorry about that forgot the .org

Jerry says:

July 11th, 2007 at 7:19 pm star

This is off topic but I thought I would share another useful tool.... Want to get an idea of your competition's traffic, incoming links, etc. Check out www.alexa.com. Click the traffic ranking and enter the url. If your sit is not listed it is an easy process to submit. This is an Amazon company.