Whenever you accept an online credit card purchase, there is a risk of fraud. Scammers use stolen cards or card information to make fraudulent transactions until the legitimate cardholder notices the unusual activity and contacts their bank to dispute the charges. Unfortunately, as a seller, you are held liable for any fraudulent transactions.
While the rise of e-commerce comes with an increased risk of identity theft and chargebacks, there are steps you can take to protect your business. We recommend always confirming your customer's information for any online payment to prevent an unfortunate fraudulent event.
Always confirm the following for every online payment
Once the transaction has gone through, check your customer database to see if the buyer's information is already there. If any details are missing, request the information from your customer.
Confirm the following:
- First name
- Last name
- Phone number
- Email address
- Mailing address, including postal code
Conform, if applicable:
- License plate number
- Driver's license number
- Company name
- Company phone number
- Company email
- Company mailing address
If any of these identifiers do not match the customer's information in your database, this is a red flag. For example, if the “bill to” and “ship to” fields have different addresses, and the customer is requesting express shipping, this could indicate a fraudulent transaction. We recommend that you process an immediate refund.
Discover Kimoby Pay's fraud-prevention feature here.