Along with the evolution of technology over the years, we are also observing evolutions in the business. We are using technology in the business to provide convenient services to the customers. We are also using it in the business to save money. As more and more businessmen are shifting towards online business.
Therefore, it has provided a way to the thieves and muggers to attack the online businesses and to steal their valuable information and money. Along with hackers, some regular customers are also involved in fraudulent activities. Some essential tips to save your online business from these fraudulent customers are given below;
Usually, banks and credit card associations use AVS (Address Verification System). As a businessman, if you want to save your business from online frauds, you can also use AVS. With the help of AVS, a businessman can easily compare the address of a credit card with the information on the documents. After verifying the information, they send a code and after receiving this code, they can make payment. When you send and receive payments by using this code, there are fewer risks of fraudulent.
Upgrade To The Chip Readers:
In the brick and mortar stores in the US, most of the people do frauds by using counterfeit cards. If you want to save your online business from this kind of fraud, you should implement EMV. If you have not upgraded your system yet, you should try to upgrade it to the chip readers. The merchants who are using chip readers are not reporting credit card frauds. Its reason is that in these chip readers, they are using the EMV technology. This EVM technology is a theft resident.
Ensure The Safety And Security Of The Processing Of The Online Payments:
If you have processed an online payment but you are not handling the credit card information, it will create some problems for you. Before processing the online payment, you should ensure the safety and security of the processing. For this reason, you should take an overview of lots of essential things. You should take an overview of the orders of the customers. For example, if a customer is purchasing lots of the same things, he can make a fraud. If a customer is making multiple purchases on the same day, he can also make a fraud.
If you observe that multiple purchases are coming from the same IP address, there are also chances of fraudulent payments. You don’t process the online payments from those credit cards whose users have failed AVS. If you are getting orders from those countries where you don’t have customers, they can also be fraudulent customers. If different customers are providing the same shipping address with multiple credit cards, they can also make fraudulent payments. More than 45% of the credit card payments frauds are done without the presence of the credit cards. Therefore, you should be aware of it.
Scrutinize The Payment Methods:
If you are an online retailer, you should know the types of online payments along with their pros and cons. For example, you can accept regular credit cards for making payments. Now, these credit cards are creating some kinds of problems for retailers. You can also use PayPal as a payment method. PayPal is known as the most secure payment method for your online business.
Its reason is that it saves your business from fraudulent customers by using its advanced scam protection features. You can also use cryptocurrency as the payment method for your online business. This kind of payment method can also create some problems like it’s worth changing day by day.
Use The CVV2 Card Verification Code:
Most of the online vendors are accepting payments via debit cards or credit cards. Like other vendors, if you have also included this payment method in your online business, you should include the CVV2 verification code at the main page of the payment. This code is present at the backside of the credit or debit card. This code is not included in the magnetic stripe. Therefore, fraudulent customers can’t use it for duplicate payments.
You Should Implement The Company-Wide Password Policy:
As shared by an assignment writing service, a company-wide password policy is the best choice for you to save your business from online frauds. While setting the passwords, you should not use dictionary words. Its reason is that these kinds of passwords are easy to guess for hackers. You should also ask the colleagues that they should not share passwords.
To enable two-factor authentication is also an effective way to save your business from fraudulent customers. Its reason is that when banks realize that someone is trying to get access to the customer’s account from various computers, they will send a two-factor verification to the person.
Track The Parcels:
Most of the fraudulent customers take advantage of the weaknesses of the postal service of online businesses. As a result, they make complaints to the companies that they have not received the parcel and they want their money back. If a company is not using a tracking system for the parcels, it will not give proof to the customers. As a result, they have to return the money. On the other hand, if a company is using the tracking system for the parcels, it can easily track the parcels and it can also provide proof to the customers. After providing proof to the customers, they don’t need to return the money.
Confirm Order Before Shipping Them:
Nowadays, some fraudulent customers are also involved in friendly fraud. For this reason, they purchase a product from a company and when it is shipped, they claim that their card was lost and they have not made this payment. If banks take the side of the customers, the company has to return this payment.
As a result, the company has to face a double loss. The first loss is in the form of product and second loss in the form of a returned amount. To save this kind of fraud, the companies should try to confirm the order before shipping it. They can easily confirm it via phone call or email address. After shipping the order by confirming it, the customers can’t claim for the refund.