Copyright © 2006-2007 Scott Burke
Merchant concern about online credit card fraud and chargebacks is rising at a significant rate. According to the 2001 Online Fraud Report, conducted by Mindwave Research, it revealed that, "41% of merchants say the issue of online credit card fraud is 'very serious' to their business." As e-commerce continues to flourish the number of instances of credit card fraud and chargebacks will continue to mount higher. It should go without saying that the need to take certain measures to reduce and virtually eliminate chargebacks and fraud is certainly paramount.
Chargeback, the word that Internet merchants fear. A chargeback is what it's called when a transaction is reversed. In other words, rather than adding money to your account it is deducted. Chargebacks can occur for a wide variety of reasons, such as double-charging, credit card expiration, bank error and customer disputes. If you get too many chargebacks against you, there is a possibility that you will lose your merchant account. Once you've lost your merchant account you are placed on the Visa/MasterCard Terminated Merchant File (TMF/MATCH list) for several years which all Merchant Account Providers have access to, and if they find you on the list they won't reissue a merchant account to you. If you are one of those merchants who have lost their merchant account, there is still hope. Imax Business Solutions specializes in helping companies who've lost their merchant account because of excessive chargebacks.
Here are some ways you can greatly reduce the instances of chargebacks and fraud, even potentially eliminate the risk altogether:
#9 Collect CVC2 and CVV2 Verification Numbers
This tactic alone can not only reduce instances of chargebacks by 26%, according to Visa, but also reduce any pass-through fees that may be charged when a credit card order is conducted. On the back of MasterCard, most Visa and Discover credit cards is a 3- digit security code located right after your credit card number. Requiring customers to give the 3-digit code acts as an additional verification measure. American Express cards also have a similar security code that is located on the front of the card right above the cardholder's account number and is usually 4- digits long. Most online payment processors support entering the security codes when processing credit card orders. Check with your payment gateway provider (i.e. Verisign, Authorize.Net, ECHO Inc., etc) for details.
#8 Use Address Verification System (AVS)
AVS checks to ensure the address entered on the order form matches the address to where the cardholder's billing statements are mailed to. People ordering products and/or services using a stolen card number will never use the real cardholder's billing address, so this is your chance to stop the order before it's too late. AVS only works with orders conducted in the US. Failure to use AVS when processing credit card transactions will always result in paying higher credit card processing fees.
#7 Scrutinize orders from developing foreign countries
A large percentage of fraudulent Internet purchases are made from Indonesia, Russia, and other eastern block or developing countries. Accept orders from such countries at your own risk until a worldwide AVS system is developed.
#6 Let customers know what name will appear on statements
Many merchants who use 3rd Party Processing companies have run into problems because the company name that appears on cardholder's monthly statements is usually the name of the 3rd party processing company and not the company name of the site the cardholder made their purchase from. This isn't always the case, but in many cases it is. If you use a 3rd party processor, and even if you don't, make sure the customer knows what name will appear on their credit card statement at the end of the month. This will help to reduce any confusion that might would otherwise occur.
#5 Handle suspicious orders accordingly
If an order seems suspicious the best way to handle the situation is to either call or e-mail the customer and attempt to verify that they placed the order. As a rule of thumb, if in doubt, check things out. It may be a good idea that if a customer makes an unusually large volume purchase from your site to follow-up with a verification call.
#4 Watch out for orders using free e-mail addresses
Be wary of accepting orders from people who used a free e-mail address when ordering (i.e. Hotmail, Yahoo, etc.). Tracking people who used a free e-mail address is almost impossible, it's much easier for them to get away then if they used their Internet Service Provider (ISP) or their own company web site e-mail address. To check whether an e-mail address is a freebie or not just take the part of the address after the "@" symbol, add "www" to the front of it and see what website it brings up (i.e. joe@yahoo.com = www.yahoo.com).
#3 Signatures on delivery
If your business delivers products use a carrier that requires a signature on delivery, and allows you to have a copy of the signature. Retain these for your records.
#2 Request fax copies of ID and credit card
You may want to request your customer to fax a copy of both sides of their credit card and driver's license. This tactic usually works best in a B-to-B (business to business) sales environment. While this is not a defense under Visa or MasterCard rules, it is yet another way to deter fraud.
#1 Posting a warning message
Taking the time to post a warning message on your order page to those who may attempt to make a fraudulent order will greatly deter the number of instances of fraud. Be sure to mention that IP (Internet Protocol) addresses are being logged. IP addresses can come in handy when locating people about fraudulent orders.
Taking measures to deter and eliminate fraud and chargebacks from occurring are a necessity in order to operate a successful online business. Each day companies dedicated to risk management are developing solutions to provide merchants, like yourself, with extra protection because of the financial burdens chargebacks and fraud can bestow if ignored.
For more information on how your business may benefit from reducing chargebacks and fraud. Click over to http://www.cmscreditcards.com
About the Author:
Scott Burke, President of MAXX Business Solutions is committed to making the merchant experience a pleasure and one that will build long-lasting business relationships. MAXX works as a trusted partner in merchant account credit card processing and strives to provide merchants with the best support, the best rates, and the best service in the industry. http://www.cmscreditcards.com/payment-processing.html
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Wednesday, December 12, 2007
9 Ways to Reduce Chargebacks and Fraud
Tuesday, December 11, 2007
A Gift Of Flowers Is Better Than An X-Box
Copyright © 2006-2007 Wesley Berry, AAF
One of today's hottest items, and among the most requested gifts, is the X-Box game system. Although video games are a lot of fun, the money it costs to buy an X-Box would be better spent on flowers. In fact, according to a study titled the Home Ecology of Flowers Study conducted for the Society of American Florists (SAF) Flower Promotion Organization (FPO), flowers have an amazing affect on those who include them in their lives.
The study was conducted by Nancy Etcoff, Ph.D., who is a faculty member at Harvard Medical School and a practicing psychologist at Massachusetts General Hospital. One of the findings of the study was that they fuel compassionate feelings in people. Participants in the study began to experience more feelings of compassion towards other people after living with flowers for less than one week.
The study also showed that flowers help people to feel less anxious, worried, and depressed when they were at home. When participants were at home with flowers they quickly began to feel less negative. Because they wanted to see the flowers as much as possible and as soon as they woke up each day, the participants placed their flowers in areas where they would be spending a great deal of time, such as the kitchen, dining room, and living room.
Another finding of the study was that they improve the energy and enthusiasm of people who live with them even when the flowers aren't present. Participants felt better and happier in their workplaces just because they had flowers at home.
To help spread the great news of the positive impact of flowers, Dr. Etcoff will serve as the spokesperson for the SAF/FPO alliance for a major public relations campaign set to begin soon. The campaign will make the findings of the Home Ecology of Flowers Study public and keep generating information about flowers. Included in the campaign will be a press kit for print media, a satellite television tour, and other materials.
Incredible news like this is definitely cause for celebration. May I suggest a party complete with gifts? But, forget the X-Box, give flowers, instead.
About the Author:
Wesley Berry is member of the American Academy of Floriculture (AAF) and President of Wesley Berry Flowers, a successful multi-million dollar floral business that was established in 1946. His shops provide flower delivery worldwide through Flower Delivery Express. Visit Wesley Berry Flowers on the web at www.800wesleys.com
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A Fall Wedding For Jennifer Aniston and Vince Vaugn
A Fall Wedding For Jennifer Anniston And Vince Vaughn?
Copyright © 2006-2007 Wesley Berry, AAF
After more than a year of neither publicly affirming nor denying their romantic relationship, Jennifer Anniston and Vince Vaughn are finally engaged. On June 27th Vaughn proposed to Anniston miles above the earth in a plane flight home from their nine-day vacation in Mexico. Although we florists recommend a proposal complete with a beautiful bouquet of roses, happily the outcome was a good one for Vaughn, even without roses-Anniston said yes. The question now is whether or not the couple will draw out their engagement without details leaking to the press, or will they move quickly and throw a fall wedding?
Summer is still the most common season for weddings, but the number of fall and winter weddings is on the rise. As reported by the Society of American Florists, according to the U.S. Census Bureau, June is still the most common month for weddings, followed by July, August, and September. However, October is running very closely behind September as a popular wedding month. September's statistics show 8.9 weddings per 1000 people while October is at a very close 8.5 weddings.
If Vaughn and Anniston should decide to get married in the fall, they'll have lots of gorgeous flowers and floral accessories to choose from. The fall color palate includes rich reds, robust oranges, warm golds, and deep burgundies, wines, and hunter greens. Such gorgeous colors are the perfect compliment to the colorful show nature puts on in the fall. Flowers and accents that are often used in fall weddings are orange gerberas, hydrangeas in rust or burgundy, apricot-colored lilies, vines, and hypericum berries.
Of course, traditional roses are also an excellent option, but those within the fall color palate are preferable for an autumn wedding. Some good fall-colored rose choices include:
Regardless of the season Jennifer Anniston and Vince Vaughn choose to be married in, there's no doubt that with the help of a professional and skilled florist, their wedding flowers will be as beautiful as the bride.
About The Author:
Wesley Berry is member of the American Academy of Floriculture (AAF) and President of Wesley Berry Flowers, a successful multi-million dollar floral business that was established in 1946. He also works with funeral-homes.net to provide useful information about funeral homes across the nation. He has been recognized by florists nationwide as a leader in the flower business. Visit Wesley Berry Flowers on the web at www.800wesleys.com |
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