In order to ensure that your company runs as smoothly as possible, you'll need to take certain steps in order to prevent payment fraud.
Running an online store can be one of the most lucrative business endeavors that you pursue. But, this doesn't mean it doesn't come without pitfalls you need to be aware of.
Not sure where to start? Don't worry, we’ve got you covered.
Let's take a look at everything you need to keep in mind.
A key component of your payment fraud prevention strategy is learning to recognize suspicious purchase behavior.
For example, a first-time customer who places an abnormally-large order may in fact be a criminal using stolen credit card information. The same can be said for large orders that are intended to be shipped to an international address. This is due to the fact that international laws make fraudulent purchases far more successful if conducted in this manner.
Additionally, you should be wary of customers who use multiple credit cards to place orders that are shipped to the same address.
Fortunately, you can drastically boost your overall security by outsourcing to a company that specializes in fraud protection.
They were equipped with all of the necessary tools and software to recognize suspicious behavior and prevent fraudulent transactions for taking place. Combined with other practices used to make your store more secure, it's highly unlikely you'll ever run into an issue that can't be prevented or quickly resolved.
Many online stores have limits on the amount of money that can be spent within a single day. The same can be said for the total quantity of items that a customer purchases within a 24-hour period.
Be sure you keep in mind, though, the typical numbers that your average customer would feasibly be able to hit within a single day. Otherwise, you may prevent honest buyers from completing their orders.
As the name suggests, this system cross-examines a credit card billing address with the address the credit card company stores for that individual. Combined with other factors that indicate a fraudulent payment is taking place, this makes it notably easy to determine whether or not the buyer is making a purchase in an illicit manner.
So, it's imperative that you utilize AVs under every circumstance so that you're able to provide the highest level of protection possible.
But it doesn't have to be.
With the above information about how to prevent payment fraud in mind, you'll be well on your way toward ensuring that your company stays as secure as possible.
Want to learn more about how we can help? Feel free to get in touch with us today to see what we can do.