As a merchant, you have several options of how best to deliver your goods to your consumer. Some offer traditional, in-store purchasing or some do a strictly online marketplace. If you offer the latter, there are some important things you need to know regarding payment methods for online transactions.
The most common type of payment method of online or mail order purchases is the card not present method. Although it sounds pretty self-explanatory, there is a lot to know about the ins and outs of this transaction type. Are you aware of the dangers?
The name, as it implies, means that the physical credit card is not present at the time of the transaction. One of the greatest risks to offering a card not present transaction is the opportunity for fraud. The biggest downfall is that the merchant cannot inspect the credit card. They cannot see if the name on the card matches the customer’s ID, or if the back of the card is signed. They also cannot be sure if the credit card numbers are stolen. Someone using the internet to purchase something doesn’t ever need to physically touch a credit card as long as they have the numbers and information they need.
If fraud does occur, the merchant runs the risk of a card not present chargeback. A chargeback is a dispute made by the customer: as a victim of fraud, they are asking for their money back for a purchase they did not make. The merchant can lose money or become liable for this issue.
Our intent is not to scare you, it is just to make sure you are aware of these potential risks and are equipped with as many security measures as you can be. Take a look at these security solutions that will help decrease card not present transaction fraud.
- Get Verified by Visa
Visa offers a service that helps card-issuers banks to authenticate the identity of the cardholders registered information when making a purchase over the internet. In short, it ensures that the information provided on the merchant website is cohesive with the information the cardholder has on file with their bank and with Visa. This verifies that the cardholder themselves is using the card to make a transaction and shifts the liability to the cardholder if ever they claim someone else was using the card. - Require CVC Codes
The CVC or Card Validation Code is another piece of information printed on the back of the card. This is another way to ensure the card holder is making a genuine transaction. Say a thief steals a card number but only acquired the front digits. They would be unable to use the card and make a card not present transaction without the additional information from the CVC. - Install Address Verification Services
A final way to combat fraud is to require address verification services. This simply ensures that the address used for shipping is valid and not a part of a crime scam.
Many people make purchases on the internet and it is smart to offer the option to your consumers. Make sure you are prepared to save your business money and hassle.
