With the rapidly booming e-commerce market making a strong footing in India, people are increasingly switching to online channels for buying products as opposed to the earlier times of purchasing in the stores. Online channels do offer a comfortable and convenient experience to customers by customizing the processes and reducing the time for transaction. Most of the urban population of India is inclined towards buying products online on account of the convenience it brings to the fore. Buoyed by the huge success of e-commerce firms like Flipkart, Snapdeal, Amazon and others, many new entrepreneurs wish to create their shopping portals. But before going ahead to such ambitious projects, make sure you follow the points mentioned below to control the growing security risks that come with credit card transactions.
Raise the alarm when billing & shipping addresses are different
When billing and shipping addresses are different and at the same time if the customer is asking for faster delivery, then it is highly possible that fraud can be committed. In addition, when the shipping and billing address of credit card are not the same, then it puts you at the greatest risk of being victimized by a fraudulent transaction.
Table of Contents
- 1 Match IP location and credit card address
- 2 Undertake research on suspect address
- 3 Track credit card numbers
Match IP location and credit card address
New e-commerce firms must check whether the IP addresses from overseas match the address of the credit card used for making payment. Next question arises as to how you can check the IP address. This can be easily done by clicking on a site such as IP-Lookup.net. You can reduce such transactions by restricting all IP addresses of the countries where you do not provide shopping. You can program your site to avoid such customers from checking out. Also you can use certain settings for blocking IP addresses without any requirement of custom programming.
Undertake research on suspect address
The best way one can detect a fraudulent transaction via credit card by researching the billing or shipping address used for placing the order. You can take help of several online tools to successfully carry out your research process to detect fraud in the transaction. Tools, such as Google maps and Zillow, can help you assess the authenticity of the address. Also you can take help of ZabaSearch, as well as address verification services of various payment brands to ensure the person actually resides at the address in question.
Track credit card numbers
You must keep a check on the number of times customer has attempted to entire the credit card number for transaction. If the number of attempts is five or more, then it is mostly likely that fraudulent transaction will take place. Must red flag the transactions wherein customers have entered multiple credit card numbers. Many credit card processors will help you in correct evaluation of the batch transactions done on particular days.
Keep an eye on suspicious email accounts
Hackers and phishers can send buy requests using a fraudulent order. Make a habit of checking the email address while placing the customer order to beat the evil intentions of hackers, phishers, skimmers, etc.
Use fraud profiling service
You can use MaxMind, a fraud profiling service that can check the authenticity of names, IP addresses, purchases made earlier and plenty more. Services like these can help you get access to a detailed assessment of each transaction while assisting you to detect transactions full of risk. E-commerce platforms like Volusion provide enhanced fraud profiling services.
Fix a cap on declined transactions
Scammers use a malicious software script to enter multiple credit card numbers in succession, which may lead to many declined transactions. As you may have to bear a charge for each declined transaction, you would be served better if you put a certain cap on incorrect entry of credit card numbers for the transaction. Following this practice will help you stay immune to the fraudulent credit card fraud as well as reduce unnecessary charges that may accumulate on declined transactions.
Tell users to enter security code
Whenever customers come for credit card transactions, ask them to enter security code, which normally is a three-digit number printed on the back of the card. This will help you boost the transaction security. Unless the card is theft, you have more or less ensured the safety of the transactions.
Ship orders using tracking numbers
The use of a tracking number can help you know the delivery of the consignment. And make sure you take the signatures of customers upon the delivery of the order.
Boost security of your website
In addition to credit card transactions, you must focus on enhancing the security of your website and e-commerce processes. Small businesses have become the soft targets of cyber attacks as their security measures are not sufficent to avoid the same. Do install PCI-compliant systems and services. PCI refers to the hallmark that signifies the highest security standards of payment card industry. You can also take help of trust mark security service that are used by many e-commerce websites to detect possible malware and fragilities by scanning the programs. Examples of such services include Truste, McAfee Secure and Verisgn, which allows you to detect and prevent problems at the earliest. Make a point to use the latest software version. Doesn’t matter if the old software has helped you in the past. It is always advisable to use the latest version to avert security risks.