Credit Card Fraud Prevention for You and Your Business

Credit Card Fraud Prevention - Your guide for credit cards

Credit card fraud prevention is now becoming a worldwide concern.

The traditional screening tools for credit card fraud can only check if your card is valid or if the account information you entered matches those on the record of the issuer.

Unfortunately, fraudsters today are able to have gotten hold of personal card information and pose as the legitimate card owner to bypass normal procedures for fraud checks.

Therefore, the techniques and procedures being used both for online and card-present screenings are also becoming more sophisticated for your protection.

Credit Card Fraud Prevention Steps to Follow

Both the credit card owners and business owners suffer and lose huge amount of money from credit card fraud.

Therefore, credit card fraud prevention techniques should work for both.

So, what are the steps both you and business owners can do?

  • How Individuals Can Prevent Credit Card Fraud

Credit Card Fraud Prevention - Your guide for credit cards

  1. Don’t forget to sign the back of your credit cards and include the letters CID, which means See I.D. in order to avoid criminals using your credit card.
  2. When paying, if your card is being swiped more than ones; check immediately why.It is common for criminals to copy information through a storage device connected to the card reader.
  3. Never carry and put all your credit cards in just one purse or wallet.Bring only the cards that you will use and leave the rest at home.

    Bringing all your cards is not a good practice.

    Once your purse or wallet is stolen or misplaced, you lose everything and all cards are subjected to possible fraud.

  4. For online shopping, verify if the online store’s website is secured.You can determine if it’s secured by checking if it has a symbol of a tiny lock at the page’s right corner or status bar.

    For better credit card fraud prevention, you may opt to use a prepaid credit card.

    If your card is stolen or a thief is able to have gotten hold of your card information, you are only liable to the amount that is loaded in the card.

  • How Businesses Can Prevent Credit Card Fraud

Credit Card Fraud Prevention - Your guide for credit cardsBrick-and-Mortar Businesses

  1. When accepting payments with customers face-to-face at your store, examine carefully the signature at the back of the card and ask for other IDs with photo.Check if the signatures on the card, the IDs, and the signed receipt are similar.
  2. Check if the credit card is authentic.The embossing should be distinct, the hologram is not damaged and the images should appear moving when the credit card is tilted.
  3. Double check if the credit card being presented for payment is not included in the list of invalid and stolen credit card numbers.Hold both the credit card and the sales invoice while calling for authorization. If you suspect a probable fraud, ask for “Code 10” immediately.
  4. After each transaction, make sure that all carbon copies or unnecessary duplicates are completely destroyed to prevent any type of fraud.

Credit Card Fraud Prevention - Your guide for credit cardsOnline Businesses

  1. Always process only the orders if all credit card information is complete.
  2. Don’t accept orders that come from an e-mail forwarding addresses or free-email addresses.Therefore, require your customers to provide you with an ISP or domain-based e-mail address, which is traceable.
  3. For credit card fraud prevention, make it a policy to ship orders only to the billing address indicted on the card.
  4. Take extra precautions for multiple transactions made from the same card numbers in a succession, unusual large orders, several orders shipped to only one address, but bought with different credit cards, and rush overseas orders.If your orders reveal any of these situations, probe further for possible fraud.

It may be impossible to prevent all credit cards fraud, but following the above steps and techniques can reduce your losses and decrease probability of credit card fraud.