Ten Ways Online Businesses Can Fight Credit Card Fraud...only One Way to Eliminate It...

Editor's Note:  I saw this come through the press wires and while the information (the 10 tips) is good, it doesn't solve the main problem.  The main problem is highlighted below.  To solve the problem (online criminals using the web to harvest credit card information) we have to change the way we purchase goods online.  We are enabling them and that "enabler" is the practice of typing card numbers into boxes on an eCommerce checkout site.   If we stopped typing altogether, and started swiping (and end to end encrypting the data)  that would go a long way towards solving the problem.  I know I sound like a broken record but I don't see anything that has occurred over the last three years that makes me change my tune.



SUNRISE, Fla., June 8 /PRNewswire/ -- With increasing concern over privacy of information online - especially in the wake of Facebook's recent policy changes - consumers and businesses alike are taking a closer look at not only privacy, but safety and security of online transactions.

To date, much of the focus has been on consumers as the victims of credit card fraud. However, according to Sean Wolf, CEO and founder of National Merchant Bancard, a vast majority of online businesses are affected by it. In fact, credit card fraud is one of the most serious risks facing online businesses today.

"Many online criminals use the web to harvest credit card information," warns Wolf, "by sending out mass emails designed to mimic those that customers might receive from their banks. They trick people into giving up credit card information. Thieves use this information to place orders online."

It's business as usual, and the products are shipped out. The charges are then disputed by the real credit card holder, forcing the business to either issue a prompt refund, or risk losing its credit card processing account and ruining its credit. "In short," says Wolf, "the business owner takes the loss." Unfortunately, credit card fraud is something that can never be entirely eliminated. Business owners must weigh the importance of using safeguards to prevent fraud, against the negatives of creating too many hoops for customers to jump through.

Wolf says online merchants can minimize the risk of credit card fraud by implementing these 10 best practices:

• Require address verification

• Only ship items to the credit card billing address

• Do not accept orders for products from credit cards issued by non-U.S. banks

• Require customers to enter their CVV2 number, located on the back of the credit card

• Capture the IP address of every customer (The IP address can indicate that a customer is placing an order from a location other than the shipping address

Or you could have your customers swipe their card and enter their PIN

replicating the same process used by brick and mortar retailers.  

• Require delivery tracking and signature

• Phone the customer to verify the order if necessary

• Be wary of any customer attempting to use multiple credit cards for any one transaction

• Watch for multiple orders shipping to the same address, but using different credit cards

• Make sure the customer's phone number is in an area code which corresponds to the credit card billing address

Wolf says businesses also can avoid costly credit card fraud by using a secure credit processing system. National Merchant Bancard's web-based terminal is a server-based transaction processing system that enables approved businesses to authorize, process and manage credit card and electronic check transactions via a secure Internet connection. This terminal is compatible with the majority of online shopping carts and software-related companies. National Merchant Bancard has direct relationships with several of the largest processing networks in the industry, including First Data, Paymentech and Global Processing Inc. The company's partnerships allow it to be compatible with almost every platform in the industry.

For information on accepting credit cards online, using the latest in anti-fraud and security measures, visithttp://www.995merchantaccounts.com.

About National Merchant Bancard

National Merchant Bancard is one of the largest merchant account providers in the credit card processing industry. The company has successfully provided more than 50,000 businesses with credit card processing software and equipment, nationwide. With over 10 years of experience in the merchant account industry, National Merchant Bancard has facilitated credit card transactions in excess of $1 billion.

This press release was issued through eReleases(R).  For more information, visit eReleases Press Release Distribution athttp://www.ereleases.com.

SOURCE National Merchant Bancard