Payment fraud is a huge issue for retailers today. When fraudulent payments are processed, it could lead to a loss of products or funds once the charges are reversed. While this is a growing issue, there are things online businesses can do to help cut down on fraudulent payments and minimize the risks of doing business online. Some of the things marketers can do include the following.
Watch Out for Suspicious Emails
Suspicious emails may be a sign the payment is fraudulent. Those who steal credit card numbers may use a fake email made of random numbers and letters as they won’t want to use their personal email addresses for these transactions. According to RealtimeCampaign.com, business owners who spot email addresses like these will want to verify the payment information before processing the transaction.
Make Sure IP Location Matches the Credit Card Address
With credit card fraud, the IP location of the purchaser may not match the location listed for the credit card holder’s address. Of course, some people may make purchases while on vacation, but if the IP address is for a different country, it’s more likely the payment is fraudulent. Business owners can learn more by clicking here.
Use a Fraud Prevention Software
Fraud prevention software will often catch potentially fraudulent payments to prevent them from going through. This type of software can look for issues like the ones listed here and alert the business owner. A business owner interested in trying out software to help with fraud can check out options like SIFT today so they can get the help they need to prevent as many fraudulent payments as possible.
Require the Security Code for the Credit Card
One question business owners may have will be Is adoption of real-time payments keeping up with fraud? While the adoption of real-time payments makes it faster for them to process, which can be great for the customer, the speed also allows fraud to be prevalent today. One way to solve this is to slow down the transaction just a little bit by requiring the credit card’s security code before processing any transaction.
Flag Unusual Transactions
Thieves with stolen credit cards will often test the cards to see which ones are already turned off and which ones are still open and able to be used. If they have just obtained a large batch of credit cards, they may try to test all of them at once with small transactions before making a larger purchase. Business owners can help prevent this by automatically blocking certain IP addresses if they process a large number of transactions at one time.
Fraudulent payments can be a huge issue for small businesses, but there are solutions available. Business owners who want to prevent as much fraud as possible will want to use the tips here as well as check into fraud prevention software to minimize the potential for issues with any payments. In the long run, this could save them quite a bit of time and money.